Market-related

Recent shocks from the COVID-19 pandemic to the ongoing Russia-Ukraine war have disrupted global food and fertilizer supply chains—causing price spikes and increased price volatility—a disastrous combination for many vulnerable consumers around the world.

The FAO Food Price Index rose by nearly 1 percent in May due to increased cereal and dairy prices. It remained 3.4 percent below its May 2023 levels and nearly 25 percent below the peak seen in March 2022.

Over 30% of rice sold in city markets in Bangladesh is refined and branded into the shape, size, and color known as miniket, which owes its popularity to its bright white color and slender grains. But miniket rice is a flawed product: It is not a true rice variety and has low levels of essential nutrients. Owing to high demand from consumers, rice vendors often sell different types of highly processed rice under that name. Processing renders miniket significantly less nutritious than other common rice types in Bangladesh, IFPRI research shows.

After seven months of declines, the FAO Food Price Index rose slightly in March due to increased vegetable oil, dairy, and meat prices. The Index remained 7.7 percent below its March 2023 levels.

During 2021 and 2022, global food and fertilizer prices spiked due to several overlapping factors. Demand rose as the world economy emerged from the COVID-19 recession; global supply chains suffered major disruptions associated with the uneven recovery; and the outbreak of war between Russia and Ukraine—both key food and fertilizer producers—generated yet another shock.