Food prices fall sharply

Global food prices fell sharply last month as production increases in key crop producing regions, but economic turmoil is expected to hit the poor in developing countries, the UN food agency said Thursday. The Rome-based Food and Agriculture Organisation (FAO) said its monthly food price index fell by two percent in September compared to August, to 225 points. That was substantially lower than the record high of 238 points reached in February 2011.
"International prices of all cereals with the exception of rice fell sharply," FAO said, adding that higher production had combined with lower than expected demand including for ethanol, which had helped push up cereal prices. The index was still higher than its September 2010 value of 195 points however.