Elections to lead to rise in wheat demand, imports

Wheat imports are projected to rise by a tenth to 2.2 million metric tons (MT) this year due to a perceived increase in demand that may be brought about by increased spending in the upcoming elections. “We expect [demand] this year to be brisk. Ten percent is quite a modest projection given a situation that will call for increased consumption not only for logistics but for food as well," Ric Pinca, executive director of the Philippine Association of Feed Millers, Inc. (Pafmi) said at the weekend. Wheat imports for feeds and food processing have steadily risen in the past two years. In 2009, total wheat imports reached 3.1 million metric tons — 1.1 million metric tons feed and two million metric tons milling or flour wheat. “We hope to replicate if not surpass that figure this year," Pinca said. Last year, flour millers sought to extend the zero-duty on milling wheat imports under Executive Order 765 to lower the prices of bread and bread products to more affordable levels. The order resulted in a P200 per 25-kilo bag cut in flour prices. Pinca said the government should cushion the impact of high bread prices by maintaining at zero percent the tariff on imported wheat. “But that is over now. We should move on and do whatever we can in our capacity to rationalize the prices of bakery products," he said. In a statement, the association has urged big flour millers and bakeries to cut the cost of their bakery and bread products. Prices of bakery products such as pandesal went down to P1.50 apiece from P2.50 in the early months of last year, a development that flour millers themselves would want to carry on this year. “Prices have considerably gone down. Neighborhood bakeries are selling much lower now, but branded bread is still priced a bit higher," Pinca said. The price of locally processed flour dropped to P650-P670 per bag from P760 reflecting not only the removal of the three percent tariff on wheat grains earlier last year but also the cheaper cost of wheat in the world market. — GMANews.TV