New Delhi : Global prices of agricultural items are expected to decline gradually over the next 10 years as growth in production is likely to exceed demand, reports PTI.

However, the prices would not fall below the rates that prevailed in early-2000, said the report ‘Agricultural Outlook 2015-2024′ prepared jointly by the Paris-based think tank OECD and the UN body FAO. Lower oil prices would also contribute to lower food prices as energy and fertilisers cost would come down.

“Strong crop yields, higher productivity and slower growth in global demand should contribute to a gradual decline in real prices for agricultural products over the coming decade, but nonetheless, prices will likely remain at levels above those in the early-2000s,” FAO-OECD said.

The growth in production would be on the back of higher productivity and lower input prices, the report said.

Global wheat production is projected to rise to 786.7 million tonnes by 2024 from the average output of 700 million tonnes in 2014, while rice output is estimated to incrase to 564.1 million tonnes from 494 million tonnes in the period under the review, it said.

Oilseed output is expected to increase to 516.4 million tonnes from 425.2 million tonnes, while sugar production is likely to increase to 275.6 million tonnes as against 257.7 million tonnes in the said period.

Sugar prices are expected to recover from the current lower prices, which are a reflection of our years of global surplus with devaluation of the Brazilian currency with respect to the US dollar. “Sugar producers are adjusting their output, which will lead the world sugar market into a deficit phase and hence move prices slightly upwards,” the report said.