By Khaleej Times
Food prices in the UAE are expected to drop substantially in the coming weeks, thanks to reduced retail fuel prices as well as a decline in global commodity prices and ease on restrictions of exports of certain goods, say local retailers.
Exports of wheat, cereals and cooking oils from Ukraine have started while India has also eased a ban on sugar exports which will have a positive impact on the local retail prices and also help lower inflation in the country. This will result in direct benefits to the consumers in the country.
Since the outbreak of a war between Ukraine and Russia in February, exports of food items have been halted, resulting in a major increase in basic food items. But Russia and Ukraine reached a Turkey-brokered deal to export grain.
Both Russia and Ukraine are major producers of commodities and ease of tension between the two countries will boost exports and help reduce the prices of basic commodities.
The Food and Agricultural Organisation (FAO) reported that food prices fell significantly in July. The FAO’s data showed prices of palm oil, sunflower oil, wheat, cereals, coarse grain, maize and sugar among others.
The UN agency noted that its Food Price Index fell 8.6 points to 140.9 in July. Vegetable Price Index decreased by 19.2 per cent in July, Cereal Price Index saw an 11.5 per cent decline last month, world wheat prices dropped by as much as 14.5 per cent, coarse grain and maize prices saw an 11.2 per cent and 10.7 per cent decline, respectively. The Sugar Price Index fell by nearly four per cent.