The import tariff on wheat is set to increase for a second time in 2016, on account of the continued downward trend in global prices and weakening of the rand (the local currency). According to latest information, the import duty will be raised by 30 percent from 1 224.31 rand (USD 82) to 1 591.1 rand (USD 102.6) per tonne. The tariff is based on a formula using current world wheat prices and expectations about future value of the rand. The measure aims to protect local farmers from low prices in the international market, but it also affects consumer prices. Domestic prices of wheat increased sharply in May and hit an all time high on account of the expected rise in import tariffs and a decline in production.