Price of instant noodles set to rise - ResearchInChina

Date:2007-11-28liaoyan  Text Size:
INSTANT noodle makers may make a second attempt to raise prices in Shanghai due to increasing flour costs.

It comes almost three months after the country's price supervision body foiled the first price increase and accused the instant noodle makers of "price collusion."

Major instant noodle manufacturers have already delivered notices to local supermarkets stating they will raise prices next month as the cost of flour keeps rising, Shanghai Morning Post reported yesterday.

Supermarkets are now in talks with suppliers to settle details and may offset part of increased noodle costs according to the market situation and the expectations of consumers, the report said.

Taiwan-based Ting Hsin International Group, Jin Mailang Beverage (Beijing) Co Ltd and Uni-President Enterprises Corp, three major instant noodle makers, all declined to reveal information to the newspaper about price increases.

The wholesale price of flour jumped to 1,930 yuan (US$261) per ton, 150 yuan higher than early this year, Zhao Zhiwei, chairman of the Shanghai Cereals & Oils Management Association, told the newspaper.

A nationwide price rise in July was considered an act of illegal collusion between companies and the industry-based association, the National Development and Reform Commission ruled.

The offending noodle producers had to return all profits gained from the price rise. They will also have to pay fines up to five times the profit earned, according to the Price Law.
2005-2011 www.researchinchina.com All Rights Reserved 京ICP备05069564号-1