Wheat prices have already gone up to over $500 per metric ton triggering a potential increase in wheat flour prices of P15- P20 per 25-kilogram bag starting next week, according to the Philippine Association of Flour Millers Inc. (PAFMIL).

Ric Pinca, PAFMIL executive director, said it is possible that millers would increase prices given the incessant price hike of wheat in the international market. “Yes, it is possible that millers will increase an additional P15-P20 per bag,” he said.

For the wheat arrival in May, the prices of locally milled flour would already be at P1,000-P1,020 per bag from P990, previously.

“Considering the almost doubling in prices of wheat from $330 per MT to over $500 at present, the increase in wheat flour prices was just limited to between 15-20 percent overtime. This means, millers did not really implement the full cost. We pity the consumers, but there is nothing we can do,” said Pinca.

But Pinca also said that each of the 22 wheat millers are also competing, thus, increases are also under control. He said that PAFMIL no longer asked members of their prices of millers noting that millers set their prices depending on their capability and type of customers.

Pinca further noted that prices of wheat flour stayed at P860 per bag for quite a long time because prices of wheat in the US and Australia, the country’s main sources of wheat, were stable at $330 per MT.

But when Russia invaded Ukraine, wheat prices continuously moved higher reaching to over $500 per MT at present. Russia and Ukraine accounts for 30-40 percent of total world wheat supply. Those affected by the Russia-Ukraine supply disruption also shifted to the US and Australia and even to India, but the latter decided to ban wheat exports.

Pinca further noted that the peso has already depreciated to P56 against the US dollar and the cost of logistics also went up as prices of diesel surged to P87 per liter from P40.

For instance, the cost to transport wheat flour from Manila to Naga is now at more than P40 per bag from P30 per bag only.

What is important, he pointed out, is there is no shortage in supply. “We have no supply problem, we always maintain a 90-day inventory,” he said.