The UN has reported falling food prices for the third month in a row in December last year.
Compared with figures of 2011, prices of sugars, dairy products and oils have seen the sharpest drop. These have cleared fears of a food crisis due to sharp increases earlier last year.
The drop in prices of oils and fats is mainly due to continued build-up of large global inventories of palm oil. An increase in global sugar production, especially in Brazil has subdued the sugar market.
Also, large export supplies of maize from South America relieved market pressure and led to a decrease in maize price. Meat registered a slight decrease as pork prices fell by 2 percent.