ROME, Oct 4 (Reuters) - The United Nations' world food

price index jumped in September, data released on Friday showed,

posting its biggest gain in 18 months on the back of surging

sugar prices.

The price index, compiled by the U.N. Food and Agriculture

Organization to track the most globally traded food commodities,

rose to 124.4 points in last month from 120.7 in August, the

highest level since July 2023 and up 2.1% on the year.

The sugar index soared 10.4% month-on-month, driven by

worsening crop prospects in Brazil and concerns that India's

decision to lift restrictions on sugarcane use for ethanol

production may affect the country's export availabilities, FAO

said.

The cereal price index increased 3.0%, led by higher wheat

and maize export prices, while rice prices declined 0.7%.

Vegetable oil prices gained 4.6% on the month, with higher

quotations registered across the board for palm, soy, sunflower

and rapeseed oils.

Dairy prices rose 3.8% in September, with quotations up for

whole milk powder, skim milk powder, butter and cheese, while

meat prices edged up 0.4%.

In a separate report, the FAO marginally increased its

forecast for global cereal production in 2024 to 2.853 billion

tonnes from a previous 2.851 billion tonnes.

The increase reflected upward revisions to rice and wheat

outputs that outweighed a minor reduction in global coarse

grains production, FAO said.

World cereal utilisation looked set to increase 12.4 million

tonnes in 2024/25 to 2.853 billion tonnes. By contrast, the

agency cut its forecast for world cereal stocks at the close of

the 2025 season by 1.7 million tonnes to 888.1 million.

(Editing by Crispian Balmer)