Japan to Reduce Price of Imported Wheat by 11％

The Yomiuri Shimbun

6:00 JST, September 14, 2023

The agriculture ministry announced Tuesday that it will lower the price at which the government sells imported wheat to millers and other parties by 11.1% from October to ¥68,240 per ton.

This is the first time in three years that the price is lowered. It will roughly return to the level it was at before the Russian invasion of Ukraine began.

According to calculations by the Agriculture, Forestry and Fisheries Ministry, the price of a loaf of bread will be reduced by ¥2.0, or 0.9%, and the price of household-use soft flour will be reduced by ¥13 per kilogram, or 3.9%. The reduction is expected to be reflected in retail prices this winter.

To ensure a stable supply, the government purchases almost all imported wheat from countries including the United States, Canada and Australia and sells it to flour millers and others. Prices are revised twice a year — in April and October — based on international prices and exchange rates.

Prices have been on an upward trend due to unfavorable weather in the United States and other countries as well as growing tensions in Ukraine, but recently wheat production areas in the United States have had good weather. Ocean freight rates have also fallen, leading to the price reduction, according to the ministry.