Price of Wheat Flour Sky Rockets as Christmas Approaches

Kenyans will have to dig deeper into their pockets to purchase a packet of wheat flour this Christmas, as the price of wheat in the international market shot up by 32 per cent.

A two-kilogram packet of wheat flour is currently retailing at an average of Sh135, the highest price recorded in the last one-and-a-half years.

The increase in pricing has seen a tonne of wheat being sold at Ksh63,000 from Ksh57,964 in July.

This has impacted in the local prices as Kenya relies on imports to close the domestic supply gap.

The highest price of wheat was recorded this year in October at Ksh69,005 for a tonne. That price has informed the current high flour prices as millers make shipment orders three months in advance.

“Wheat prices in the world market have been on an upward trend since June. The current consumer cost does not even match our current wheat purchase price,” said Mr. Rajan Shah, chief executive Capwell Industries.

Millers have since requested the government to let the market forces determine the buying price of wheat instead of fixing it.

Customers queueing at a supermarket. Photo/Courtesy

They argued that fixing prices had a negative impact on the consumer price.

The festive season will also see an increase in milk prices. The prices of milk have been fluctuating since March following a supply shortage that has forced processors to adjust their prices in response to the tightening supply in the market.

In the latest review, a half-liter packet of the popular Gold Crown New KCC brand has gone up to retail at Ksh52 from Ksh50.

The same quantity for Brookside is now selling at Ksh55 from Ksh50.

The increase in the prices have been attributed to decline in supply of raw milk.

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