Global food prices rise due to extreme weather

The UN food and agriculture body has said food prices around the world have skyrocketed in July, sparking fears of a repeat of the 2007-2008 food crises.

According to the Food and Agriculture Organization (FAO) report the rally was caused by the drought in the US and production difficulties in Russia. "The severe deterioration of the maize crop prospects in the US following extensive drought damage pushed up maize prices by almost 23% in July," said the FAO. Food prices jumped 6% in July from June after falling three months in a row. The price hike has mostly affected grain and sugar.Prices for cereal rose 17%, while sugar leapt 12% after rains hampered sugarcane harvesting in Brazil. The price of rice and dairy was unchanged while meat fell 1.7%.mainly due to a slump in pork prices.The surge in prices renewed fears that there could be another food crisis similar to the one that hit in 2007-2008.Higher food prices hurt the world's poorest countries. It means they will have to pay higher import bills as they do not produce enough food at home. Russia’s Ministry of Agriculture expects a significant fall in the volume of grain production, forcing producers and retailers to raise prices.