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Food and Agriculture Organization (FAO) released its food price index

Published on January 08, 2023
Current Context: In spite of a ninth consecutive month of declines in food prices in December, the Food and Agriculture Organization (FAO) of the United Nations reported on January 6 that global food prices reached a record high in 2022.
Food and Agriculture Organization (FAO) released its food price index
  • The FAO's food price index, which analyses global food commodity prices, averaged 143.7 points in 2022, a 14.3% increase from 2021 and the highest level since records were kept in 1990. As the global economy recovered from the pandemic's effects in 2021, the index had already increased by 28% from the year before.
  • The December declines
    • The benchmark index dropped from 135.00 points in November to 132.4 points in December. This decrease was attributable to a dip in the price of vegetable oils on the world market, as well as some price drops for meat and cereal, but was partially offset by modest price rises for sugar and dairy products. While the sugar sub-index achieved a 10-year high in 2022, four of the FAO's five food sub-indices—cereals, meat, dairy, and vegetable oils—reached new highs despite this month-to-month decline.
  • Cereal Price Index
    • The Cereal Price Index increased by 17.9% in 2022 due to market disruptions, rising energy and input costs, unfavorable weather, and ongoing high global food demand.
  • Initiatives to Reduce Increasing Costs
    • The U.N. opened a grain export route from Ukraine in 2021 in an effort to lessen the effects of these rising prices. This has assisted in at least partially offsetting the initial spike in food prices brought on by the conflict in Ukraine, as well as the anticipation of increased supplies in producing nations.
    • The conflict in Ukraine and a number of other factors, such as market disruptions, higher energy and input costs, unfavorable weather conditions, and strong global food demand, contributed to the FAO's food price index reaching a record high in 2022, despite experiencing a second consecutive monthly fall in December.

Question: 

Q.1 Who released Food Price Index?
a. FAO
b. UN world food program
c. Robin hood Army
d. Both 2 and 3
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