June 30, 2008

Indonesia expects 11-percent rise in wheat imports as demand rises 

Indonesia's wheat imports may rise 500,000 tonnes, or 11 percent, to 5 million tonnes this year as flour mills expand capacity to meet rising demand, said a senior industry official Friday (June 29, 2008).

Wheat imports are rising as Indonesians eat more flour-based products such as instant noodles and bread, in addition to their staple diet of rice.

"Four new flour millers are expected to start operating this year to meet rising local demand, so wheat imports are likely to rise, said Franciscus Welirang, chairman of the Indonesian Wheat Flour Producers.

However, local flour rates are unlikely to rise much in the short term as most Indonesian flour producers have already secured deliveries until September this year.

Indonesia buys wheat from the US, Canada, Australia, Argentina and China.