Global food prices, which reached their highest level since September 2025 in March, are expected to continue rising if the conflict in Iran persists. The war has increased energy and shipping costs, raising the FAO Food Price Index to 128.5 points (a 2.4% increase from February). A prolonged conflict beyond 40 days could hamper planting, reduce future yields, and keep prices high through 2027.

Global food prices, which reached their highest level since September 2025 in March, are expected to continue rising if the conflict in Iran persists. The war has increased energy and shipping costs, raising the FAO Food Price Index to 128.5 points (a 2.4% increase from February). A prolonged conflict beyond 40 days could hamper planting, reduce future yields, and keep prices high through 2027. 

Key Impacts of Continued Conflict:
Rising Costs: -
Higher energy prices directly increase freight and production costs, influencing commodities like cereals, meat, dairy, and oil.
Production Risks:-
 If the conflict lasts, farmers may reduce inputs, leading to lower yields and tighten future supply.
Supply Chain Disruption: -
Closure or disruption of the Strait of Hormuz affects oil shipments and aggravates agricultural input costs.

MJF Lion ER YK Sharma 

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