Last year was a year of inflation. Inflation reached record highs in almost all countries of the world last year due to the impact of the Russia-Ukraine war. There was no end to the misery of people due to special food price inflation. According to Reuters news, food prices were the highest in 2022 after 1990.
The Food and Agriculture Organization of the United Nations (FAO) publishes the Food Price Index every month. It showed that the average value of FAO's food price index in 2022 was 143.7 decimal points. This is the highest level since the introduction of the FAO price index in 1990. According to the index, the price index value increased by 18 points in 2022 compared to 2021. As a result, food inflation has reached 14.3 percent in 2022. Food prices have not increased at the same rate in all countries. Again, the impact of food price increases is not the same in the countries. Food inflation has been on the rise since the start of the Russia-Ukraine war. Food transportation was disrupted in March-April last year due to war. As a result, the FAO price index rose to a record high. In March 2022, the food price index rose to a high of 159.7.
Then till April, May, and June, it was 158.4, 158.1, and 154.7 respectively. In August, it fell to 140 in one fell swoop. After that, food prices continued to fall. Last December it came down to 132.4. The overall average value for the year stands at 143.7. In the middle of last year, in the presence of the Secretary General of the United Nations, an agreement was reached between Russia and Ukraine on the transportation of food grains through the Black Sea. Both sides agree that neither Russia nor Ukraine will attack grain ships. It is not that this promise has not been broken at all. However, the export of food grains by sea was never completely stopped. Since then, food prices have been falling. According to the terms of the agreement, its deadline was November 17 last year.
However, after November 17, it has been extended for another 120 days. It includes the export of grains, foodstuffs, and fertilizers from the Black Sea coast ports. But there is no guarantee that Russia and Ukraine will again violate the agreement. If they violate the agreement again, food prices will increase. The world's leading wheat exporters are Russia and Ukraine. They have a global reputation as a treasure trove of bread. Apart from this, they export 19 percent of barley, 14 percent of wheat, and 4 percent of corn in the international market. Together, these two countries supply one-third of the world's food grains. As these two countries get involved in the war, food prices will naturally increase.
Due to the increase in the price of energy, the developed countries of the world provided huge subsidies last year. Many countries have given incentives to citizens during Corona. In some countries, various forms of assistance are still being provided. In countries where these subsidies are provided, it becomes relatively easier for the people of those countries to cope with the shock of food inflation. In March 2022, FAO said food prices could rise by up to 20 percent that year. Their words finally came true.
Meanwhile, Bangladesh is now full of Aman season. There has been a bumper yield. Still, the price of rice shows no signs of abating, rather it is on the rise. It is said that initially speaking at different levels, this situation has arisen due to the transfer of the rice business to other hands. The price of rice is not rising or falling due to an increase in the production cost of rice and decrease in the consumption of wheat and an increase in demand for rice. -Editor