Flour price set to increase: Aptindo

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.