https://www.engineeringnews.co.za

Wheat tariff increase should not affect bread price – Grain SA

11th April 2016

By: Anine Kilian

Contributing Editor Online

  

Font size: - +

The 34% wheat import duty increase would not affect the price of bread, farmers’ association Grain SA announced on Monday.

Following the Finance Ministry’s announcement on Friday that it had approved a tariff increase on wheat imports – from R911.2/t to R1 224.31/t – there were concerns about the impact this would have on the price of bread and other staple food.

However, Grain SA explained that the the price of bread would not be impacted by the latest increase, as the price of bread should have decreased in December 2015, following the lower international price of wheat. However, the price actually increased over this time, according to a Stats SA bread price survey.

Following a delay in the announcement by National Treasury stipulating that the international price of wheat was down, wheat importers benefited, earning R313/t on 608 126 tons, or R190-million, during this time. 

Therefore, once the 34% increase in the tariff on wheat imports, which was supposed to be in place since December, was announced, the benefit that importers enjoyed would be removed, explained Grain SA CEO Jannie de Villiers.

He added that the wheat price was only 18% of the bread price and was sometimes used as an excuse to increase the price of bread.
 

Edited by Samantha Herbst
Creamer Media Deputy Editor

Article Enquiry

Email Article

Save Article

Feedback

To advertise email advertising@creamermedia.co.za or click here

Showroom

Bell Equipment
Bell Equipment

As one of South Africa's leading manufacturers, Bell Equipment distributes and exports its wide range of heavy equipment globally to mining,...

VISIT SHOWROOM 
SABAT
SABAT

From batteries for boats and jet skis, to batteries for cars and quad bikes, SABAT Batteries has positioned itself as the lifestyle battery of...

VISIT SHOWROOM 

Latest Multimedia

sponsored by

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION







301

sq:0.056 0.711s - 155pq - 2rq
Subscribe Now