Consumers set to pay more for imported food

The latest outlook by FAO shows the price index for global prices of sugar has climbed 44 points as at August compared to the 216 points in May.

This represents a 20.37 per cent increase in just three months.

The FAO index for cereals went up 27 points from May to settle at 187 points last month, representing a 17.41 per cent growth.

Kenya traditionally imports wheat, sugar and rice, meaning that the price surges would be directly felt in consumer prices.

For instance in the case of rice, Kenya produces only about a third of its annual demand of 250,000 tonnes with a bulk of the shipments to fill the deficit coming from Pakistan.

Unfortunately for importers such as Kenya the forecast for global rice production in 2010 has been revised downwards to 467 million tonnes, five million tonnes lower than the June 2010 forecast.