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Indonesia Indofood Says Wheat Imports to Rise 5 pct

Source: Reuters
13/05/2009

Jakarta, May 13 - Indonesia's PT Indofood Sukses Makmur Tbk , the world's largest instant noodle maker, said on Wednesday it expects its flour millers' wheat imports to rise 5 percent this year on growing demand for flour-based food.

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Indofood controls two of the world's largest flour millers through its unit Bogasari Flour Mills. These imported between 2.8 and 3 million tonnes of wheat last year, said Franciscus Wellirang, company director.

"Demand for Bogasari's flour is expected to increase by 5 percent this year. So wheat imports by the unit will rise correspondingly by around 5 percent," Wellirang told reporters.

Bogasari sold about 2 million tonnes of wheat flour in 2008, Wellirang said.

He did not say why demand is increasing. However, Southeast Asia biggest economy held legislative elections in April and is due to hold presidential elections in July, and political parties typically spend heavily on food for supporters, including instant noodles.

Indonesia depends entirely on imports for wheat, which it buys from Canada, the United States, Australia, countries in Eastern Europe, Argentina and China.

It has projected wheat imports will rise 5 percent this year to 4.5 million tonnes to meet growing demand during an election year.



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