6 Sep 2007

Fiji set for increase in price of bread

3:21 pm on 6 September 2007

A major flour producer in Fiji says residents will have to pay more for their daily bread soon as a result of the global wheat shortage.

The price of wheat has gone up by 50 percent since the beginning of the year because of bad weather in Europe and Australia, and increasing demands for bio fuel.

The chief executive of Flour Mills of Fiji Limited, Sanjay Punja, says his company, which imports its wheat mainly from Australia, also feels the price rise.

Mr Punja says customers in Fiji don't pay more for their flour or bread at this stage, but they will be affected soon.

"We are a little bit unfortunate in Fiji. Prices are controlled by the government. We cannot increase the price each time the price of wheat goes up. We need to apply to the government for a price increase. But on a bigger picture, we have made an application and there should be an increase in the very immediate future"

Sanjay Punja however says the price hike will not be too substantial.