Global Wheat and Sugar Prices Rose in August, FAO Says

Global wheat and sugar prices climbed in August, according to the United Nations Food and Agriculture Organization. Wheat rose 2.6% during the month and stood 15% higher than a year earlier. Sugar prices jumped 11.9%.

The FAO attributed the wheat increase to disruptions to exports from the Black Sea region, hot and dry weather in Europe, lower harvest forecasts and strong import demand.

Sugar prices rose amid expectations of a smaller sugar beet harvest in European Union countries and concern about the effects of the El Niño climate phenomenon on Asian countries. The increase also reflected lower production in Brazil and India’s decision to cancel import duties on raw sugar.

The price movement could matter for Kyrgyzstan because the country depends on imports. Agriculture Ministry data cited in the report show that Kyrgyzstan meets about 80% of domestic sugar demand, with the remainder supplied from abroad. A significant share of imported sugar comes from Eurasian Economic Union countries.

Kyrgyzstan’s self-sufficiency in food wheat and flour products remains between 50% and 60%. The report identifies Russia and Kyrgyzstan as the main wheat suppliers. Overall, global food prices rose 1.9% in August from July and 2.5% from a year earlier.