Price of wheat is expected to increase by at least 15 % , what is the implication for us ?
As the Federal Government studies what and how much subsidies to reduce, the future price of wheat will represent another problem.
The Federal Government has already set the price of sugar. Now it is the time to have a closer look at the price of wheat.
Listening to the radio, I heard that the international price of wheat has gone up by 24 % .
There appeared to be a world shortage of wheat as a result of drought , Russia and some of the countries around the Black Sea has placed a banned on wheat export . Russia used to supply 20% of the world market and now this is gone . Canada another major exporter of wheat will also see a reduction in the export of wheat.
It is left to US and Australia as the major wheat suppliers.
Malaysia buys the bulk of its wheat from Australia. If Australia responds to this increase and as it surely would, we can expect the price of wheat and its products to increase. It is learned that we can expect at least a 15 % increase of export price from Australia.
This means, price of bread and cakes will increase. Fortunately the price increase, if it sets in, will be seen in 2 to 3 months time or at least after Hari Raya Puasa.
With increase cost, demand for bread and cakes is expected to drop. Hope ever, demand for sugar and eggs, the main ingredients for cakes will drop and so will their prices.
Let us wait and see.
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