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Jakarta Post

Flour price may soar 20% in October due to low harvest

  • The Jakarta Post

Jakarta   /   Mon, August 23 2010   /  09:57 am

The Indonesian Sugar and Flour Traders Association (Apegti) predicts that the country’s flour price may rise 20 percent starting from October due to increased world wheat prices stemming from decreased global production.

The price of wheat in several stock exchanges rose after the government of Russia announced that the country would temporarily halt wheat exports from Aug. 15 to Dec. 31 due to the severe drought that hit the country recently.

The UN’s Food and Agriculture Organization (FAO) estimates that Russia’s 2010 wheat production may drop 20 million metric tons to 42 million or 43 million metric tons.

Two weeks ago, the price of a bushel of wheat at the Chicago Commodities Exchange rose US$5 to $7.50.

Apegti chairman Natsir Masyur said Saturday that the local price of flour would be hugely influenced by world wheat prices because the entire supply...