The agriculture ministry said Monday it asked the flour milling industry to adjust retail prices to reflect recent falls in imported wheat prices and help stabilize inflation.
The Ministry of Agriculture, Food and Rural Affairs made the request in a meeting with seven flour millers, including CJ CheilJedang Corp. and Daehan Flour Mills Co., as imported prices of wheat have been on the decline following a sharp hike in the wake of Russia's war with Ukraine.
Imported wheat prices fell to US$416 per ton this month, after peaking at $496 per ton in September last year. But they are still higher than a yearly average of $283 per ton.
During the meeting, the companies said they will consider the possibility of adjusting retail prices in July to help stabilize the market, according to the ministry.
But it remains unclear whether the flour millers will actually reduce the prices, as they cited several difficulties, including a surge in accompanied costs and foreign exchange rates.
The request came as consumer prices for wheat-based products were up substantially in 2022 from a year ago and increased overall food prices.
Last week, South Korea's finance minister advised local producers of instant noodles to cut prices of "ramyeon," citing falls in global flour prices.
Source: Yonhap News Agency