Bread price may increase by 10 tetri (3.22 cents) from October in Georgia, Malkhaz Dolidze, head of the Georgian Bread Bakers Association, has announced.
He said unfavorable forecasts regarding the supply of wheat in the rural market and the reduction of stocks in Georgia might be reflected on the bread prices in a few months.
“The price of bread consists of many components, including the cost of flour, yeast, transportation and labor costs. We do our best so that the price is not too much of a burden for the population. Currently, it’s hard to say for how much the price will increase, or if it increases at all,” Dolidze said.
According to him, bread price will not increase if state engages in the bead subsidy program.
“Flour produced by our mills has become more expensive, and the difference compared to the price of flour imported from Russia is 5-6 lari ($1.61-1.93),” Dolidze said.
Levan Silagava, head of Georgian Wheat and Flour Production Association, explained that the trends on the local market were directly related to the world market.
“According to the analysis published by the US Department of Agriculture, forecasts on crop volume are reduced in eight wheat-producing countries, including Russia. The decline amounts to 10 million tons, while we make most of wheat imports from Russia. Russia has imposed new floating tax on wheat in July and now the tax amounts to $49 per ton instead of $25,” he said. (Trend/Business World Magazine)
