Flour price set to increase: Aptindo

The Jakarta Post, Jakarta

Local flour producers will gradually raise flour prices starting this month following the recent increase in the price of wheat on the international market, according to the flour producers association (Aptindo).

Aptindo executive director Ratna Sari Lopes said on Wednesday that flour prices were expected to rise by 15 percent to 17 percent during the next few months.

She said that world wheat stocks were estimated to drop by 15 percent this year following crop failures in leading producing countries such as the U.S., Canada and Australia.

"The price of wheat in the international market has already risen by about 30 percent because of falling wheat stocks, so it will inevitably cause a rise in the price of flour here," Ratna said.

As of Aug. 30, the price of the flour type known as hard red winter ordinary had already increased by 34 percent to US$171 per ton, from $131 per ton in the same period in 2001.

Indonesia imports 100 percent of its wheat needs from several producing countries. Wheat is the raw material for flour production.

The country is estimated to import some 4 million tons of wheat this year.

The country's flour producers are PT Bogasari Flour Mills, PT Sariboga Ratu Raya, PT Pangan Mas and PT Berdikari.

The price of flour peaked in the October to December period last year. Since then, the price of flour has continued to decline.

The World Grain Council predicted the world wheat stock would decrease to 142 million tons this year, from last year's 168 million tons.