NEWS

Prices of Wheat Products in Fiji to Increase

The prices for wheat products in Fiji are controlled under section 39 of the Fijian Competition and Consumer (FCCC) Act 2010, through which FCCC regulates the prices pertaining to the supply of wheat products at the factory, wholesale, and retail level.
29 Jul 2022 07:53
Prices of Wheat Products in Fiji to Increase

The price of flour is set to increase by 12% after the review of conversion costs following submissions which were requested from manufacturers as part of the last price review for wheat products which was conducted in April 2022.

From the beginning of July, FCCC received submissions from wheat manufacturers in Fiji requesting for an increase in the price of wheat products due to surges in global wheat prices.

The prices for wheat products in Fiji are controlled under section 39 of the Fijian Competition and Consumer (FCCC) Act 2010, through which FCCC regulates the prices pertaining to the supply of wheat products at the factory, wholesale, and retail level.

 

Fiji sources most of its wheat from Australia, so any increase in prices of wheat in the Australian market will directly reflect on wheat prices domestically.

Flour, as a wheat product, is a main component in Fijian diets and processed flour is used in many pastry and bakery products. Every household in Fiji consumes flour in one form or another, and almost on a daily basis. It is an essential food item and is price-controlled.

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.

 

The price of flour in Fiji is increasing sharply as there is a movement in the world market which is beyond our reasonable control. Any movement in the world market directly affects us and we must respond swiftly to the changes in the world market in order for domestic markets to remain feasible.

The tension between Russia- Ukraine is a contributor as well as they both together supply more than a quarter of the world’s wheat.

FCCC’s independent assessments and verifications have noted increases in wheat prices by close to 12% and is directly sourced from the increase in the international wheat prices published by the Australian Wheat Board (AWB)..

 

In addition to this, FCCC has also factored in the movement of the USD currency which is also a factor which impacts trading commodity prices.

For the assessment, the USD & AUD currencies were assessed as international wheat prices are published in USD/AUD, compared to the last price review in April 2022 and FCCC determined that the average increase in domestic wheat prices will be 12%, and will come into effect from this Friday, 29 July 2022.

 

Screenshot 2022-07-29 073017

 

FCCC will continue to closely monitor movements in the international wheat market and ensure that domestic prices are set in a reasonable and sustainable manner in the interest of consumers and traders and in accordance with the FCCC Act 2010.

 

Feedback: jyotip@fijisun.com.fj



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