Japan to increase wheat prices amid shortage concerns

The Japanese government will hike wheat prices for flour mills by 18 per cent from April 1, the Agriculture Ministry said.

The average price will come to 56,710 yen (US$689) per ton, as wheat prices around the world soar amid concerns about a possible shortage due to soaring demand from developing economies coupled with adverse weather conditions in wheat-producing regions.

In Japan, the government single-handedly imports wheat and sells it to flour millers at prices determined semiannually in April and October, based on its preceding half-year purchase prices.

When bad weather sent international grain prices higher in 2007 and 2008, Japan’s average domestic price climbed as high as 76,030 yen a ton in October 2008. It had since been trending lower.

“The upcoming price hikes will not have a big impact on retail prices” of bread and udon noodles, Senior Vice Minister Nobutaka Tsutsui said. Flour is said to account for a few per cent of such prices.