RI to import Indian wheat

RI to import Indian wheat

SINGAPORE (Dow Jones): Indonesian flour mills will import 400,000 metric tons of Indian wheat this year, a senior industry official said Wednesday.

Thomas Darnawan, executive director of the Indonesian Association of Food and Beverages, said that three Indonesian flour mills will bring in 400,000 tons of Indian wheat starting June.

The flour mills are PT Bogasari Flour Mills, PT Sriboga Ratu Raya and PT Pangan Mas.

Darnawan said that the wheat was priced at $125-$130/ton, C&F, Jakarta.

He said the wheat will be imported with the help of a credit facility of between $150 million and $200 million offered by the Indian government.

He said that this is the first time that Indonesia will import Indian wheat as Indonesia usually buys from Australia, Canada, U.S. and Europe.

Indonesia is one of the biggest importers of wheat in the region, with annual purchases estimated at over 3 million tons.