Bulog raises flour prices

Bulog raises flour prices

JAKARTA (JP): The National Logistics Agency (Bulog) has raised
flour prices to Rp 704.44 (US$0.30) a kilo, including value added
tax, from Rp 681.91 due to increasing wheat prices on the world
market.

Bulog's chairman, Beddu Amang, told journalists yesterday that
the world's wheat prices have now increased to the region of $250
to $280 a ton from $180 in 1994.

Although the flour price has been raised, Beddu said, Bulog
will not change its wheat prices or wheat processing fees.

Bulog's wheat is processed into flour by privately-owned flour
mills, mostly owned by PT Bogasari Flour Mill -- an affiliate of
the giant Salim Group.

Beddu said the increase of flour prices, effective this month,
is expected not to raise flour prices at the retail level. He
argued that retailers should maintain their old prices
considering they have collected relatively large profits from the
previous flour price.

He noted that flour prices have been relatively stable at
market places. They contributed only 0.003 percent to the
inflation rates recorded in the 1994/1995 and 1995/1996 fiscal
years, ending in March.

This year, Beddu said, Bulog will import some 3.4 million tons
of wheat, almost the same as last year's level. Most of the
country's imported wheat comes from Australia. (pwn/rid)