World food prices rose for the third straight month in October to reach fresh 10-year peaks. This surge is attributable to reopening of the economy and a bustling festival season which has resurrected demand.

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The upsurge in buying, along with adverse weather being reported in major food grain producing countries, have caused worries of further price surge and stock woes.

Soaring fertiliser and container rates have only compounded the market worries. The price of essentials are also on the rise, with cereals gaining 3.2 percent and wheat trading at around nine-year highs in the global markets.

Also Read: World food prices at decade highs; here’s why

In an interview to CNBC-TV18, Atul Chaturvedi, Executive Chairman of Shree Renuka Sugars, said, "All commodities worldwide have been moving northwards and vegetable oil is no exception. Indian vegetable oil prices have been on the upsurge for the last 6-8 months and now we are entering a phase where the downturn is going to start. Contrary to perception, the demand during Diwali was not all that strong as far as vegetable oil is concerned. However, even from the world's perspective, palm oil exports out of Malaysia and Indonesia are coming off a bit. Similarly, demand from China is also petering off a bit."

Also Read: Except mustard oil; edible oil prices drop by Rs 5-20/kg, says Food Secretary

Siraj Chaudhry, MD & CEO of NCML, said, "India is relatively better off and that is the benefit of being a country which is largely self-sufficient, barring in edible oils. In pulses, certain government actions like control on stocks and having local crop of soya and other oil seeds coming in at this point in time will help us cushion the pain relative to a lot of other countries in the world."

Watch video for entire discussion.

(Edited by : Thomas Abraham)