The government has decided to raise the price of selling imported wheat to flour milling companies by more than 17% from next month.
Prices will be the second highest ever.
In addition to poor harvests in major production areas, rising international prices due to the tightening situation in Ukraine are having an impact.
Approximately 90% of the wheat consumed domestically is imported, and the government procures it in a lump sum to secure it stably, and reviews the selling price to flour milling companies every six months.
Regarding the selling price from next month to September, the Ministry of Agriculture, Forestry and Fisheries has decided to raise the average of the five major brands to 72,530 yen per ton, which is 17.3% higher than the previous six months.
This price is the second highest ever since October 2008.
The main factor was the poor harvest due to high temperature and dryness last summer in the main production areas of the United States and Canada.
Another factor is that the tension in the situation in Ukraine has spread uncertainties about the supply of wheat from Russia and Ukraine, pushing up international prices.
The Ministry of Agriculture, Forestry and Fisheries estimates the impact on food prices, and estimates that household flour will increase by 12.1 yen per kilo, or 4.4%, and bread will increase by 2.6 yen, 1.5% per loaf.
The Ministry of Agriculture, Forestry and Fisheries explains that the flour milling company will actually revise the price of flour about three months later in the past example.