New Delhi: The Food Agency of the United Nations has said that in March, the prices of food items and oil in the world markets have fallen sharply. Due to the Coronovirus epidemic, there was a decrease in demand, due to which the prices of oil have fallen in the international market.

The Food and Agriculture Organization (FAO) Food Price Index, which estimates monthly changes for cereals, oilseeds, dairy products, meat and sugar baskets, averaged 172.2 points last month, down 4.3 percent from February. FAO senior economist Abdolreza Abbasian said the fall in prices is largely driven by demand and supply factors. Prices are reduced due to increase in supply and decrease in demand.

FAO's sugar price index has recorded the biggest decline, with a decline of 19.1 percent compared to February. The Rome-based agency said that in many countries the decline was attributed to reduced consumption due to the applicable lockdown due to the coronavirus and lower demand from ethanol producers due to the recent drop in crude oil prices.

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