JAKARTA, INDONESIA — A modest increase in 2021-22 wheat imports in Indonesia is expected as the population grows and the economy rebounds, according to a report from the Foreign Agricultural Service of the US Department of Agriculture (USDA).

Imports are estimated at 10.4 million tonnes, up slightly from 10 million tonnes in 2020-21.

Based on increased demand from small businesses and higher production of wheat-based products for export, the USDA estimated declines in food sector consumption of wheat flour will be offset with total food consumption increasing by 1%.

Demand for wheat in the feed sector is expected to decline significantly as comparatively lower priced domestic corn will reduce feed miller’s incorporation of wheat into feed rations, the USDA said.

Wheat consumption by feed mills in 2020-21 is expected to drop from 1.8 million tonnes to 1.3 million tonnes. It is expected to decrease further to 1 million tonnes in 2021-22.

“Declining wheat consumption among poultry feed may in part be offset by increasing demand for wheat in aquaculture feed,” the USDA said.

Corn production is expected to decline to 11.6 million tonness from the previous estimate of 12.1 million tonnes in 2020-21, due to lower harvested areas. Imports are expected to reach 900,000 tonnes in 2020-21 and 1.3 million tonnes in 2021-22.