Even as the Food and Agriculture Organisation warns of a severe food crisis in the coming days, a World Bank report has shown that commodity prices across the globe has gone through the roof.
According to the WB datat, February witnessed a 40 per cent rise in coal prices and 24 per cent in rice. To add to that fuel, food, fibre, and metals saw double-digit jump in global prices.
Another warning by the WB is that there is hardly any chance of these prices coming down in the near future.
International supply shortages and investment fund inflows are fueling the prices across the globe.
Coal prices soared 43 per cent on a series of supply shortfalls in China and Australia due to bad weather and concerns about South African exports following power shortage that will require replenishment of utility stocks.
Potassium chloride, TSP and DAP fertiliser prices surged 41 per cent, 35 per cent and 17 per cent, respectively.
Rice went up 24 per cent due to limited export supplies, deteriorating prospects for the next crop, and the impact of higher wheat prices.
Lead jumped 18 per cent on falling stocks, strong battery demand in China, and weather-related supply reductions, also in China.
Coffee Robusta and Arabica prices jumped 16 per cent and 12.5 per cent, respectively.
Wheat rose almost 15 per cent due to record low stocks and poor winter-wheat crop prospects in southwest US and northern China.
Aluminium prices rose 14% due to power cuts to energy-intensive smelters in China and South Africa which reduced production.
Copper increased by almost 12 per cent on falling stocks, a pick-up in China's imports, and expected tight supply conditions this year.
Silver climbed 10 per cent on strong investment demand, led by a switch out of other financial assets, and as a hedge against the falling dollar and rising inflation.
Palm kernal oil and coconut oil, which are close substitutes, increased 9 per cent on increased import demand and supply tightness.
