Japan to cut domestic wheat price by 11.1% from October
Japan will slash the price at which it sells imported wheat to domestic flour mills from October by an average 11.1% to reflect lower import prices,the farm ministry said.
It marks the first drop in three years and reflects softer international wheat prices. Japan buys five types of milling wheat from the United States, Canada and Australia through import tenders and sells to domestic millers at prices set twice a year.
Lower world prices mean Japan is able to end special measures it has implemented over the past year to curb price hikes, aiming to ease the burden on households grappling with cost-of-living pressures.
The average purchase price of imported wheat for the last six months fell thanks to good weather in major wheat growing regions in the United States and lower ocean freight rates due to weaker transportation demand in China, the ministry said.
For the six months starting Oct. 1, the ministry’s wheat selling price to local millers will average 68,240 yen ($465) per metric ton, down from 76,750 yen the previous six months.
Imports accounts for more than 80% of Japan’s total wheat demand.
Japan has taken temporary measures twice – to restrain the increase for April-September and to hold off the price hike for the previous six months – to soften the burden on households.
Source: Reuters (Reporting by Yuka Obayashi; Editing by David Holmes)
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