Flour Millers Expect No Shortage but Increase in Prices

The forecast for this year’s supply of wheat-milled flour for the country remains sufficient, local flour millers predict that flour prices will continue to increase due to the global prices of wheat also increasing. 

Global wheat prices rose last 2021 from $300 per metric ton (MT) to $500 per metric ton. 

According to the Philippine Association of Flour Millers Executive Director Ric Pinca, India’s export ban, the Russia-Ukraine war, and the drought in the USA are all contributing factors to the rise in prices of wheat. 

Executive Director Pinca adds that “We are facing a food crisis. There is so much wheat in the world, but more than half of it is unable to go out to export,”

Russia and Ukraine make up at least 30% of the international export supply volume of wheat. Due to the ongoing war, around 20 million MT were barred at the Odessa Port. Russia has been known to be the world’s leading exporter of gas, fertilizer, and wheat. 

India also banned exporting wheat last May to “manage the overall food security of the country and to support other vulnerable countries.”

India is the world’s second-biggest producer of wheat. 

The United States, on the other hand, continues to battle with drought in their country. 

“As far as the millers are concerned, we have enough warehouse capacity. In fact, our capacity to mill annually is six million metric tons. But we are only importing three million metric tons, roughly 50% because hindi kaya bilhin ng mga tao ‘yung magagawang harina,” shares Executive Director Pinca. 

According to Pinca, the 23 flour millers of the Philippines have since been operating at reduced capacity due to the increase in prices of wheat imports.

Source: Philstar