Indonesia to continue wheat flour imports from Sri Lanka
View(s):Indonesia is to continue wheat flour imports from Sri Lanka despite the introduction of safeguards to country’s domestic wheat flour industry. “Our domestic wheat flour industry has been seriously affected by foreign supplies over the recent years.
We are aware of the importance of wheat flour industry in Sri Lanka and, therefore, consultations are continuing between the two governments to address this issue in a mutually satisfactory manner” said Bayu Krisnamurthy, Indonesian Vice Minister for Trade when he met Rishad Bathiudeen, Minister of Industry and Commerce in Bali, Indonesia recently.
Though Australia, Canada and US lead the list of wheat grain suppliers to Indonesia, when it comes to milled wheat flour imports to Indonesia, Sri Lanka ranks second just below Turkey amongst wheat flour suppliers, a press release issued by the Ministry of Industry and Commerce said.
In 2010, Sri Lanka was the second largest foreign supplier of wheat flour to Indonesia with 166,919 Mt providing one fifth of wheat flour imports to Indonesia. In the first half of 2011, Sri Lanka’s wheat flour share in Indonesia jumped to 32%! Wheat flour milled in Sri Lanka consists of a considerable amount of Lanka’s exports to Indonesia. In 2012, more than 80% of Sri Lanka’s $ 87 Mn exports to Indonesia consisted of wheat flour.
Sri Lanka’s trade with Indonesia totaled $505.4 Mn in 2012, with Sri Lanka exporting US$87 million and importing $418.4 Mn. Sri Lanka’s main exports to Indonesia include wheat flour, apparel, tobacco, tea and tyres, while primarily imports coal, chemical products, cement, tobacco products and palm oil from Indonesia.