Global sugar and grain prices rise, putting pressure on Kyrgyzstan’s food market

Global food prices rose sharply in August, with sugar and cereals leading increases that could feed directly into Kyrgyzstan’s domestic market. The Food and Agriculture Organization of the United Nations said its Food Price Index climbed 1.9 percent from July to 133.3 points, putting it 2.5 percent above its level a year earlier.

Sugar recorded the steepest monthly increase, rising 11.9 percent. FAO attributed the move to drought in Europe, the effects of El Niño in Asia and lower sugar production in Brazil. The cereal index rose 2.2 percent, including a 2.6 percent increase in global wheat prices. Wheat now stands 15 percent above its 2025 level amid drought in Europe and export problems in the Black Sea region. Corn rose 2.5 percent and rice 0.5 percent.

Dairy prices increased 2.3 percent as milk yields declined in the European Union during an unusually hot summer. Vegetable oils rose 1.1 percent, driven by palm and soybean oils, while meat prices increased 1 percent because pork, poultry and mutton became more expensive. Global beef prices declined.

FAO expects global cereal production in 2026 to reach 2.98 billion tonnes, 2 percent below the 2025 figure. Wheat production is forecast at 810.7 million tonnes, down 3.8 percent, while corn output is expected to reach 1,309 billion tonnes and rice production 553.1 million tonnes, a 1.9 percent decline. Kyrgyzstan’s heavy reliance on imported commodities leaves its food market exposed. The article says rising global wheat and sugar prices could push up domestic prices for flour, animal feed and bakery products during the autumn and winter, while the Cabinet of Ministers has raised its annual inflation forecast to 14 to 15 percent because of continuing external shocks.