Wheat Price Will Stay Stable Till Spring
16 February, 2012
Wheat Price Will Stay Stable Till Spring

The recent news that Russia plans to impose restriction on its wheat export by spring pegged up the flour price hike apprehensions in Georgia. However, experts believe no price hike looms in prospect till spring.  

Flour has already increased in price by GEL1-2 early this month from GEL 31 per a 50 kilo sack of flour to GEL 32-33 however wheat exporters and bakeries do not forecast further price hike till the prognosis on corn harvest are made by spring.

 They do not disclose reasons why the price increased so far.

“Prices did not change at all and are not supposed to increase in near future,” Davit Galegashvili, Head of the Association of Georgian Wheat Importers said in the interview with Georgian Journal. “We do not import wheat from Ukraine at the moment and refer to Russian import very seldom: it makes perhaps 10-15% of our supply. Our bulk supplier is Kazakhstan making about 60-70% of our supply, and it costs USD 335 per ton including transportation to Gardabani [Tbilisi adjacent region]. 10-15% is our local production and about 10-15% Russian import that we refer to very seldom.”

According to him, the harvest was good past year and forecast for this year can be made only by spring when crops will be sawn. Otherwise, the underway crazy winter globe over makes him optimistic that harvest can be good for frosts and snow is good for harvest.

“This is no price hike in fact, flour gained just GEL 1, it is not an alarming price change and we do not plan to increase bread prices,” Nugzar Kvinetidze, Head of Alali 94 bakery, explains. “I cannot say why the flour price went higher by GEL 1 but that is not a significant change to affect bread price, if it increased by GEL 3 it might affect bread prices, but I do not expect any change in price till spring.”

Irakli Lekvinadze, an economic analyst, thinks the recent increase in price can be explained by apprehensions that Russia plans to impose restrictions on its wheat export. Although Georgia diversified its wheat supply and no longer depends on Russian wheat by 80% as before, restrictions on Russian export that is one of the biggest players at the international corn market can jack prices up. To regulate its export within 25 million tons Russia has been planning to tax its export by Value Added Tax (VAT) starting past year and now made up its mind to adopt the VAT starting April of 2012, Reuters informed on February 1st, 2012 based on comments of Ilya Shestakov, Deputy Agriculture Minister of Russia. According to him, the final decision will be drawn after the export figures of February will be clear.

Lekvinadze presumes that although Georgia no longer depends on bulk Russian wheat import taxing Russian export by VAT will affect prices in Georgia in this way or other.

“Russia is one of the biggest market players and VAT will restrict Russian export that will affect international market prices and this indirectly will be reflected on Georgia, since prices go in all wheat exporting countries and any imported corn will get more expensive. However more precise data will be known by end of this February when harvest prognosis will be made. The recent change in prices can be explained by presumptions that reserves are expiring in Georgia,” he elaborated.

Georgian statistics service has not the latest data of wheat reserves of Georgia as the data of 2011 will be reported by June of 2012.

Print
Other Stories
Georgian citizens are granted the right to work in France
The French Embassy in Georgia made remarks on granting Georgian citizens the right to work in France
The New York Times: Bitcoin declines but Georgia still bet on it
The New York Times has recently published an article about reasons, challenges and causes of generating Bitcoin in the former Soviet country Georgia.
EU to allocate € 13 billion for Eastern Partnership countries, including Georgia
The European Union together with the World Bank plans to allocate investment worth € 13 billion for infrastructure projects in the Eastern Partnership countries.
Anaklia Port and its importance for Georgia
In 2016, Anaklia Development Consortium was authorized to launch the construction of Anaklia Port.
Cryptocurrency mining threatens electrical network in Abkhazia
In the breakaway region of Akbhazia rampant cryptocurrency mining is threatening the shaky electrical network, reports an article of the news portal EuroNet.
Caucasus Wine University to be opened in Gurjaani
In the Kakheti region a new viticulture campus of the Caucasus University is in the process of planning.
Photos describing life of the poorest in Georgia
Fight with poverty should be among top priorities of every government in every country.
Training farmers to rescue the organic hazelnut production in Georgia
Even drizzling rain and unpleasant gusts of wind can’t prevent the farmers from coming and participating in the agricultural training.
Bleak times for organic farmers in Georgia – but there is hope
Organic hazelnut production is a delicate plant in Georgia that has emerged just a couple of years ago. Various pests, among them the Asian stink bug Parosana, trouble hazelnut farmers and menace their livelihood – even before their businesses could really take off.
Hybrid car imports are going through the roof in Georgia
Thanks to their fuel economy, the popularity of hybrid cars is increasing in Georgia, where fuel affordability is low and prices for fuel are unstable.
The New Year offer from MAQRO Construction - Apartments with unbelievable discounts and the parking spaces for FREE!
Location, green yard, spaces for various needs, experience of the construction company and parking space are the main important criteria for potential buyers of apartments.
Interview with the co-founder of Kiwi Vegan Café – the first vegan place in Tbilisi
Behind the Kiwi Vegan Café stands a group of activists who wants to raise Georgian’s awareness for animal rights and welfare.
Biblusi opens first shop for tourists - Georgian
The largest book shop in Georgia Biblusi opens the first shop specially designated to the needs and interests of tourists and named it Georgian.
Georgia improves by five ranks in the Prosperity Index
In the overall Prosperity Index rankings, Georgia has climbed by 5 positions from 85 to 80 when compared to last year. As such, Georgia is the best performing country in the CIS zone.
The future is bright for electric cars in Georgia
The numerous hybrid cars in the streets of Tbilisi cannot be overlooked. Entrepreneur Sulkhan Gvalia calls them “pagers”, referring to the predecessor of mobile phones.
Georgia’s fight against the big tiny enemy – Asian Parosana
It’s a tiny creature, but the harm it did to the Georgian agriculture sector was and still is immense.
New cable route: from Kobi to Gudauri in 15 minutes
On the 15th of December, cable transport is scheduled to be opened connecting Kobi and Gudauri.
Tourist boom in Gudauri – majority of hotels are booked by foreigners
Gudauri is among the most popular winter resorts in Georgia.
Medical tourism increases in Georgia
In the last 9 months, Georgia was visited by 19 500 foreigners for medical and recovery purposes.
Doing business in Georgia has become easier than in America
According to the Doing Business 2019 report published by the World Bank, Georgia ranked 6th among 190 countries in terms of simplicity of doing business. This was an improvement over two ranks compared to last year.
Problems that foreigners frequently face in Georgia
The importance of Georgia as a tourism hub is growing year after year.
Tbilisi TV Broadcasting Tower – Better than the Eiffel Tower?
It is planned to renovate the Tbilisi TV Broadcasting Tower, one of the landmarks in the capital.
Georgian Fusion Menu by The Biltmore Hotel Tbilisi
5,895,914 international visitors have visited Georgia between January and August of 2018. Compared to the previous year the number has increased by 12.2 per cent.
Advertising of gambling and lucrative games may become banned in Georgia
Advertising of gambling and lucrative games may become banned in Georgia. Those who violate the new rule would be fined GEL 10 000.
Lebanese café-lounge Beirut opens in Tbilisi
What is necessary to organize an unforgettable event? – Fun, emotions, lots of surprises, good music and delicious menu.
PHOTO OF THE DAY
GEL Exchange Rate
Convertor
15.02.2019
16.02.2019
USD
1
USD
2.6420
2.6413
EUR
1
EUR
2.9778
2.9791
GBP
1
GBP
3.3915
3.3851
RUB
100
RUB
3.9577
3.9608
Other Stories
Recently Toyota rolled out Global Campaign under this slogan that reflects the Olympic and Paralympic Spirit of Encouragement,
A couple from Switzerland combines Swiss tradition and technology with Georgian products. Their cheese is made in the Georgian mountains and sold in local stores and hotels.
It has been more than five years since the residents of Lilo village, near Tbilisi, cannot open their windows.
63 000 GEL was received by the Georgian Agro Export Group which is just a small part of the European Neighbourhood Programme for Agricultural and Rural development.
Georgian entrepreneur Guka Tavberidze, who runs his own business in the UK and does it quite well, has been invited by BBC
The grand opening of 7-star The Biltmore Hotel Tbilisi took place in Georgia’s capital on July 31.
DUSHETI, Georgia – The Georgian government and the World Bank will allocate USD 5.6 million (12 million GEL) to fund
A new Georgian clothing brand named Person has emerged in Georgian market.
Georgia is in the midst of an economic maelstrom, Euronews reports.
Situation at Georgia’s mineral water market is interesting: over the last year, the volume of export has grown by 56 percent. According to “GeoStat”, over $114 million worth of mineral water was sold
GEL Exchange
USD
1
USD
2.6413
EUR
1
EUR
2.9791
GBP
1
GBP
3.3851
RUB
100
RUB
3.9608
February 2019
Mon Tue Wed Thu Fri Sat Sun
1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28