WITH wheat farms going up in flames in New South Wales, Australia as a result of bushfires, there is a possibility that its effect could be felt in Fiji.
Flour Mills of Fiji Limited CEO Ram Bajekal said with wheat generally available all over Australia, if a significant portion was destroyed, it would push up the buying price globally.
And as such, Mr Bajekal said its impact could be felt on flour prices as well.
"If the prices of wheat go up as a consequence of that, it will definitely have an impact," he said.
Mr Bajekal said while the company had not heard anything about the impact on the price of wheat, there was a real need to assess the real impacts of the fire.
"We have not heard anything from the buyers, as of now there is really nothing that we have heard but we will need to assess the real impact and see how much of an impact is caused."
He said while there was no worrisome message as yet, there was a pricing mechanism used by the Commerce Commission to determine the price change of wheat.
"But right now, we have not heard anything that is the cause of an alarm."
When contacted yesterday, commission chairman Dr Mahendra Reddy said he would not make any comment on the matter.
"If I make any comment, it could be construed another way so let's wait and see. If the wheat fire happened today, there won't be an immediate effect," Dr Reddy said.