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Food prices tumble

INTERNATIONAL food prices have plummeted in recent months as a result of reduced demand for cereals and improved supplies.

Favourable weather conditions in some regions have also raised hopes of better crop supply for 2013.

The World Bank's Food Price Index showed that international prices of wheat fell by 11pc, sugar by 10pc and maize by 6pc between October 2012 and February 2013.

The bank said lower demand from a sharp fall in the use of wheat feed and declines in corn consumption for ethanol in the US has reduced prices.

"This means that, despite sustained declines, international food prices remain very high and still close to their historical peaks."