Sugar was an important reason for the rise in the price of the global food basket in recent months, Food and Agriculture Organization (FAO) of the United Nations said in the latest edition of its Food Outlook report.

According to FAO, sugar prices, which recently surpassed 30-year highs, remain elevated and extremely volatile.

In the oilseeds sector, firm prices reflect relatively slow growth in world production failing to keep pace with fast expanding demand, the report states.

Meat prices have also risen but the increase has been far more contained so far. In the dairy sector, butter has already hit an all time high. Prices of internationally traded cassava have also soared to a record level this year with production in 2010 now forecast to decline for the first time in 15 years.

Fish also registered large price gains, showing a strong recovery after sharp falls since the end of 2008. That is mostly because aquaculture producers responded to low prices by cutting stocks, which affected production.

Strong demand in both developing and developed countries continues to underpin fish prices, FAO said.