Global sugar and grain prices rise, putting pressure on Kyrgyzstan

Global food prices accelerated in August, with sugar and grain costs rising sharply and creating new pressure for Kyrgyzstan's import-dependent food market. The Food and Agriculture Organization's Food Price Index increased 1.9 percent from July to 133.3 points, its level 2.5 percent higher than in August last year.

Sugar recorded the steepest increase, with its index jumping 11.9 percent in one month. The rise followed drought in Europe, the effects of El Niño in Asia and lower sugar production in Brazil. Cereal prices increased 2.2 percent. Wheat rose 2.6 percent and stood 15 percent above its 2025 level, while corn gained 2.5 percent and rice 0.5 percent.

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

FAO's updated forecasts put global cereal production in 2026 at 2.98 billion tonnes, 2 percent below the 2025 figure. Wheat production is expected to fall 3.8 percent to 810.7 million tonnes. Corn output is forecast at 1.309 billion tonnes, while rice production is expected to reach 553.1 million tonnes, a 1.9 percent decline.

The report adds to concerns about Kyrgyzstan's domestic market. Rising global prices for wheat and sugar could push up the cost of flour, animal feed and bakery products during the autumn-winter period. The trend is consistent with risks previously identified by the Cabinet of Ministers, which raised its annual inflation forecast to 14 to 15 percent because of continuing external shocks.