Dhaka, June 7 -- The overall FAO Food Price Index dropped by 0.8 per cent in May, with global prices for vegetable oils and sugar declining sharply, the Food and Agriculture Organization (FAO) of the United Nations reported on Friday.

Prices for grains and cereals, the largest component in the broad FAO index, declined by 1.8 per cent in May, driven by good corn harvests in Argentina and Brazil, as well as lower global demand for wheat. Rice prices were higher in May amid increased demand for Indica rice and a weakening US dollar, but it was not enough to offset the other parts of the index.

Meat and dairy prices were higher in May, reports Xinhua.

FAO said meat prices, which climbed by 1.3 per cent, were impacted by higher demand for ...