August 26, 2008

Japan's wheat prices seen slightly up

To help limit the impact on consumers, the Japanese government does not intend to adhere to the recommended increase when it adjusts prices for imported wheat sold to domestic flour producers in October, The Nikkei reported in its Tuesday (August 26) morning edition.

Roughly 90 percent of the wheat consumed in Japan is imported by the government. Prices are adjusted in April and October every year, and a price hike later this year would be the fourth in a row.

Based on subsidies paid to domestic farmers, wheat prices need to be raised by about 23 percent this October. But the government plans to take steps to blunt such a sharp increase, just like it did in April.

The actual price hike will be worked out between lawmakers concerned about the impact of higher prices on consumers and those calling for the government's financial burden to be kept to a minimum.