Bread prices rise in Georgia - experts explain why

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Bread prices rise in Georgia – experts explain why

Bread prices rise in Georgia – experts explain why

The increase in the cost of the number one product is mainly attributed by manufacturers to the rise in wheat prices on world markets 11.10.2021, Sputnik Georgia

2021-10-11T15:26+0400

2021-10-11T15:26+0400

2021-10-11T15:32+0400

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TBILISI, 11 Oct – Sputnik. The increase in the price of bread by 10 tetri in Georgia is associated with several factors, including the rise in prices for wheat in world markets, said the chairman of the Union of Bakers of Georgia Malkhaz Dolidze Sputnik Georgia. Also, an increase in the cost of yeast, sunflower oil and salt, can lead to an increase in prices for product number one. Now the most popular social bread costs at least 1 lari for residents of the country. According to him, the cost of bread increased by 15-17 tetri, increased costs of packaging materials that have become mandatory in the face of the coronavirus pandemic. Plants buy bread packages in neighboring Turkey, since they are not produced in Georgia. In addition, the cost of bread was also greatly influenced by the end of the state subsidy program for wheat flour on July 1, which kept the price of bread from rising from last December. sorts was 10, and then 15 lari. Then the subsidies were extended until June 30, and the size of the subsidy was increased to 20 lari. According to the program, a fixed price was set for mills – for a 50-kilogram bag of first grade flour – 53 lari. That is, those mills that sold a bag of first category flour to bakeries for 53 lari were subsidized by the government. The program participants were flour mills, which won the tender announced by the Rural Development Agency of the Ministry of Agriculture of Georgia. According to experts, another rise in the price of bread is not expected in the near future. As Sputnik Georgia executive director of the Association of Grain and Flour Producers Levan Silagava said began to rise in price in the summer. In four months, the price of a ton of wheat increased from $ 240 to $ 320. During the year, Georgia consumes 700-800 thousand tons of wheat. Hence, only 10% of the grain is locally produced. The rest of the country is imported from Russia, Kazakhstan, Ukraine and the United States. Russia accounts for 70% of imports of this grain. Its cost was the most favorable for Georgia. Read also: Subscribe to video news from Georgia on our YouTube channel.

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The increase in the cost of the number one product is mainly attributed by manufacturers to the rise in prices for wheat in world markets.

TBILISI, Oct. 11 – Sputnik. The rise in the price of bread by 10 tetri in Georgia is associated with several factors, including the rise in prices for wheat on world markets, said the chairman of the Union of Bakers of Georgia Malkhaz Dolidze Sputnik Georgia.

Previously, experts warned that high VAT on food, higher utility rates, and higher prices for yeast, sunflower oil and salt could drive up the price of the number one product.

Now the most popular social bread costs the country’s residents at least 1 lari.

“The bakeries kept the prices as best they could. For two or three months, the cost of wheat on the world markets has increased. Since the beginning of the year, utility tariffs and prices for all products from which bread is baked have increased,” Dolidze said.

According to him, the cost of bread increased by 15-17 tetri, the cost of packaging materials, which became mandatory in the context of the coronavirus pandemic, increased. Plants buy bread packages in neighboring Turkey, since they are not produced in Georgia.

In addition, the end of the state subsidy program for wheat flour on July 1, which kept the price of bread from rising since December last year, also greatly influenced the cost of bread.

For four months, until March 31, the subsidy for one bag of flour weighing 50 kilograms of the first grade was 10, and then 15 GEL. Then the subsidy was extended until June 30, and the size of the subsidy was increased to 20 lari.

According to the program, a fixed price was set for flour mills – 53 lari for a 50-kilogram bag of first-grade flour. That is, those mills that sold a bag of first category flour to bakeries for 53 lari were subsidized by the government. The program participants were flour mills, which won the tender announced by the Village Development Agency of the Ministry of Agriculture of Georgia.

“Subsidies cannot last forever. Moreover, because of this program, bakeries were in unequal conditions. Those bakeries that baked at least 20 tons could participate in the subsidy. Therefore, those who baked less were not included in the program,” he said. Dolidze.

The next rise in the price of bread, according to experts, is not expected in the near future.

Levan Silagava, executive director of the Association of Grain and Flour Producers, told Sputnik Georgia that the price of grain in world markets began to rise in summer. In four months, the price of a ton of wheat increased from $ 240 to $ 320.

Georgia consumes 700-800 thousand tons of wheat during the year. Hence, only 10% of the grain is locally produced. The rest of the country is imported from Russia, Kazakhstan, Ukraine and the United States. Russia accounts for 70% of imports of this grain. Its cost was the most profitable for Georgia.

Read also:

World food price index rises at a record for the first time in 40 years
Inflation in Georgia remains high – new statistics
Prices for industrial products in Georgia continue to rise
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