JAMAICANS will, as of today, be digging deeper into their pockets to purchase flour.

The Jamaica Flour Mills Limited, in a release Friday, said a 45-kilogramme bag of baking flour will now be sold for $2,600, up from $2,325, an 11.8 per cent increase, while a bag of counter flour will be sold for $2,350, up from $1,995, a 17.8 per cent increase. A bag of counter-plus flour will be sold for $2,250, up from $1,930, a 16.6 per cent increase.

It was, however, not clear up to Friday what level of increases the island's bakers will be putting on the prices of bread, buns, biscuits and other products. Immediate past president of the Jamaica Bakers' Association, Gerry Chambers, said bakers were not prepared to handle increased costs at this time.

Jamaica Flour Mills, a member of the Archer Daniels Midland Group, said the primary reason for the price hike was the increased demand on wheat supplies from Canada and the United States of America due to adverse weather conditions, mainly in Europe, and the potential loss of inventory in Asia.

The Consumer Affairs Commission, in a statement last Thursday, advised that the price increases were as a result of natural disasters and other external situations being experienced by key international producers, which had placed pressure on wheat supplies. These, it said, included:

* the late wheat crop in Canada and the United States -- which affected supplies of wheat for counter flour;

* the extended drought and fires in Russia, which had a negative impact on wheat supply for bakery flour; and

* an expected increase in the demand for wheat by India, which is the largest net importer of that product.

The CAC said that based on its calculations the increase by the Jamaica Flour Mills was likely to result in a six to eight per cent movement in the price of baked products, such as bread and water crackers.

source:http://www.jamaicaobserver.com/news/Flour-prices-go-up-today_8061344