Global food prices rise in March as energy costs rise globally:FAO

Global food prices rose in March, driven largely by higher energy costs linked to the escalating conflict involving Iran, the Food and Agriculture Organization (FAO) said on Friday.The FAO Food Price Index, which tracks changes in a basket of globally traded food commodities, averaged 128.5 points in March, marking a 2.4% increase from its revised February level.
According to FAO, the uptick in prices has so far remained moderate, with rising oil prices being the primary driver. “Price rises since the conflict began have been modest, driven mainly by higher oil prices and cushioned by ample global cereal supplies,” said Maximo Torero.The agency noted that sufficient global cereal availability has helped limit sharper increases in food prices, despite mounting geopolitical tensions.

FAO’s Food Price Index shows vegetable oil & sugar prices rising in March due to higher crude oil prices & biofuel demand amid the Middle East conflict. Cereals haven’t followed yet. If disruptions persist, higher input costs will affect future yields. https://t.co/YoMU9ch3hz

— Maximo Torero (@MaximoTorero) April 3, 2026

However, the FAO expressed concern that a prolonged conflict could have more significant consequences. If tensions persist beyond 40 days and input costs such as fuel and fertilizers remain elevated, farmers may scale back production by reducing inputs, planting less, or shifting to alternative crops.Such adjustments could lead to lower agricultural yields, potentially tightening global food supply and exerting upward pressure on prices later this year and into 2027, the report flagged risks.