Wheat tariff increase should not affect bread price

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This comes after the increase of 34% on import duty price was announced by the National Treasury bringing the price up to R1224, 31 per ton.

A statement from Grain SA said importers of wheat benefitted by about R313/t on more than 600 000t following the delay in the announcement by the Treasury.

According to Stats SA, inflation trends show that the price of bread has increased since December.

Jannie de Villiers, CEO of Grain SA, said there was no reason for the price increase. Only 18% of the price of bread is derived from wheat, but the wheat price was often used as an excuse to increase the price of bread.

Grain SA said that the current wheat import tariff system was approved in 2013 by Minister of Trade and Industry Rob Davies.

“The view that the increase in the wheat import duty will increase the bread price by 10% is not correct,” said De Villiers.

It would be a setback to the consumer if opportunistic behaviour resulted in an increase in the price of bread, he said.

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