Economics
In News: The UN Food and Agricultural Organisation’s (FAO) Food Price Index fell.
- This marks the seventh successive month of decline in the index.
About:
- FPI is a weighted average of world prices of a basket of food commodities over a base period value, taken at 100 for 2014-16
- The dip in the FPI has been despite the cereals sub-index posting an increase. Global wheat and maize prices rose on the back on uncertainties relating to exports from Ukraine.
- Food items have a 45.86 per cent weight in the official consumer price index.
- Global food prices coming off from their highs reduces the risks of imported inflation, which was seen particularly in edible oils.
- These have remained elevated, mainly on account of extended southwest monsoon rains damaging the harvest-ready kharif crops in many parts of the country
- The same excess rains have, however, helped fill dam reservoirs and recharge groundwater aquifers that should favour the rabi (winter-spring) crops now being planted.
- Early indications — based on improved soil moisture as well as fertiliser availability — point to a substantial increase in the area being sown under wheat, mustard, chickpea, red lentils, field pea, maize, potato, onion, garlic, cumin, coriander and other crops that are harvested from March.
Source: Indian Express
