The price of flour is increasing by an average of 21 percent from today.
The Fijian Competition and Consumer Commission says ex-factory wholesale price of 10kg normal flour is now $14.57 which is an increase of $2.55.
The price of 5kg flour is now $7.38 and the price of 50kg normal flour is increasing to $70.64 which is an increase of $11.13.
A 25kg bag of normal flour will now cost $35.50 which is an increase by $5.70.
A carton of normal flour which comes as 6 packets of 4kg flour will now cost $35.59, a carton of 12 packets of 2kg flour will cost $35.66 and a carton of 24 packets of 1kg flour will cost $36.17.
We are currently trying to get the retail prices.
The FCCC says the last price review for wheat products was conducted in March 2019, when increases in prices of wheat in the global market and freight charges led the way for a price increase in Fiji.
They say towards the end of 2021, they received submissions from wheat manufacturers in Fiji requesting an increase in the price of wheat products due to surges in global wheat prices.
They say Fiji sources a majority of its wheat from Australia, so any increase in prices of wheat in the Australian market will directly reflect on wheat prices domestically.
The FCCC says their independent assessments and verifications have noted increases in wheat prices by close to 18% and surges in freight and cargo rates by 9%, when compared to the last price review in March 2019.
They say in addition to this, they have also factored in increases in conversion costs (that is, production cost, milling and administration costs and other overhead costs), and determined that the average increases in domestic wheat prices will be by 21%.
The Commission further says it is also plausible that increases in the price of flour may also impact the prices for other goods where flour is a key, substantive ingredient.
They add that despite this importance, the price of flour in Fiji must increase when world market conditions collectively require it, such as unfavourable climatic conditions in major wheat-producing nations, buyers willing to pay higher prices to secure their supply of wheat, and transport and logistical issues stemming from restrictions related to COVID-19.
The Commission also says in recent times, there has been a lot of coverage on what impacts the Russia-Ukraine tension will have on global wheat prices, given that they both supply about a quarter of the world's wheat.
They say all these indicators point to the fact that global market conditions have led to higher prices in the Australian market, and will continue to push prices up.
The FCCC adds Fiji is a price taker and must respond to the changes in the world market in order for domestic markets to remain feasible however, they will continue to monitor conditions in the international wheat market and ensure that domestic prices are set in a reasonable, balanced manner in accordance with the FCCC Act 2010.
Authorisation of Prices for the Supply of
Wheat Products Wholesale and Retail in Fiji
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