grain prices will not return to $ 200 per ton, Levan Silagava, head of the
Association of Bread Producers, states.
outlook for the upcoming wheat harvest
“Grain harvest begins in Russia in July, in Georgia on 20th of July, and both these factors will ultimately determine the final prices for flour in the country. In any case, the downward trend in prices will not be significant mainly due to the increase in export duty on grain in Russia that affected wheat prices. The reason for this decision was an almost 3-fold increase in grain exports from Russia,” he says.
In , Russia’s this action caused a rush in demand for wheat as the businesses began to buy as much grain as possible before the new tariffs come into force. All this has led to a large number of outstanding contracts that boosted even further price hikes.
“Due to increased demand, the grain supply is not yet stabilized to decrease the prices as much as expected,” Leva Silagava notes.
In Georgia there are certain expectations about the flour prices in Georgia - the lari’s strengthening and government subsidies on wheat flour will contribute to the stability of flour prices.
“In the near future a meeting of the government officials and business will be held at the Ministry of Agriculture that will focus on subsidizing flour, ” he says
that by that time the situation with international prices will be clarified, since
wheat harvest will begin in Russia from
July 1, and in Georgia from July 20.