The Minister for Treasury has declared rice, flour and sugar as goods for price monitoring under the Prices Regulation Act, with the Independent Consumer and Competition Commission (ICCC) examining price movements as the cost of imported food continues to rise.
The declaration allows the ICCC to monitor factory-gate and retail prices, but does not mean the Government has fixed or controlled the prices of these products.In a public notice, the commission said the monitoring would help determine whether price changes in Papua New Guinea are consistent with international commodity prices, the kina exchange rate, shipping and fuel costs. It will also help identify any suppliers, wholesalers or retailers taking advantage of consumers or abusing their market power.The products covered are Roots Rice, supplied by Trukai Industries Limited; Flame Flour, supplied by Goodman Fielder (PNG) Limited; 3 Roses Flour, supplied by New Guinea Tablebirds Limited; and Ramu White Sugar, supplied by Ramu Agri-Industries Limited.
The ICCC expects consumer prices to remain high into 2027 as international food prices, freight charges, fuel and production costs continue to put pressure on local markets.The commission cited data from the Food and Agriculture Organization (FAO), which showed its Rice Price Index rose by 1.4 per cent in September 2026, while its Sugar Price Index increased by 14.7 per cent year-on-year.
The FAO Cereal Price Index was also 17.2 per cent higher than the same period last year.Wheat prices have increased by 30 per cent in 2026, while rice prices in Vietnam and Thailand rose by between 10 and 13 per cent. The FAO Food Price Index also reached its highest level since November 2022.Dry El Niño conditions have affected harvests in India and parts of South-East Asia. Disruptions along major shipping routes have also pushed freight rates up by about 50 per cent on some routes. Higher fuel, energy and fertiliser costs, together with the depreciation of the kina, have added to the cost of importing food into PNG.Local food supplies have also been affected by dry conditions, with reduced harvests and lower market supplies in some provinces. Some locally grown staple foods have become less available or more expensive, leaving households with fewer affordable alternatives.
The ICCC has advised consumers to plan their budgets, compare prices between shops and local markets, avoid panic buying and unnecessary stockpiling, and reduce food waste. Households are also encouraged to include locally grown foods such as starchy root crops where they are available and affordable.The commission said the markets for rice, flour and sugar are generally competitive, although its periodic price reviews have identified some market influence and price leadership. It will continue monitoring pricing patterns and investigate unusual or unexplained movements.Retailers remain free to set their own prices and compete with other businesses.
However, they must make pricing decisions independently and comply with competition laws. Businesses must not agree with competitors to raise prices or engage in other anti-competitive conduct.Where necessary, the ICCC may take action within its powers or make policy recommendations to the Government. Price monitoring helps the commission assess whether further regulation is needed where market abuse is identified, or whether regulation can be reduced when competition is working properly.
The ICCC also clarified that it does not regulate the prices of every good and service in Papua New Guinea. Its role covers only goods and services declared for regulation or monitoring under the Prices Regulation Act and the ICCC Act.