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Imported wheat price increase by 16%

by Simbarashe Sithole
03 Oct 2021 at 07:41hrs | Views
The price of imported wheat into Harare has increased by 16% amidst a decline in world supply of wheat Grain Millers Association (GMAZ) has said.

In a statement GMAZ chairperson Tafadzwa Musarara said the price of imported wheat has increased.

"The price of imported wheat into Harare has moved from USD440 per metric ton to USD510per metric ton, a 16% increase, at this time of the year, we are using mostly gristing of nearly 80% imported and 20% local wheat, costs of capital remains high," Musarara said.

The statement attributed the decline in world supply to drought and floods, which has increased the cost of importing the grain into the country.

"Local wheat are battling with surging imported wheat prices caused by weather vagaries like droughts and floods which are affecting major wheat producing countries, this has precipitated significant decline in world wheat supply."

However GMAZ notes the worrying decline in wheat supply with Russia the top wheat producer not being spared.

"The continuing declining of world wheat supply is worrying with Russia, a top wheat producer cutting its exports by 12.5 million metric tons to 72.5 million metric tons, the trend is also affecting Canada and USA, who are other top world wheat producers."

"World wheat supplies estimates for 2020/1 indicates a decline of 16.6 million tons to 1.066 billion metric tons. 
Consequently, end products are becoming expensive for the wheat importers worldwide.

The largest wheat importer Egypt in a historic move proposed to increase subsided bread prices which have been fixed for 20-30 years, the country is the largest bread consumer in the world.

In France, prices of packaged pasta are likely to rise an average 10% to20% due to increases in durum wheat prices, in August, the syndicate of industrial pasta manufacturers in France and the French committee for industrial semonilina said that climate change is endangering the pasta market," concluded Musarara in a statement.

The increase in the cost of importing wheat is likely to result in an increase of the price

Source - Byo24news