Malkhaz Dolidze, head of the Georgian Bread Bakers Association declares that bread price can increase by 10 tetri from October. As he notes, unfavorable forecasts regarding the supply of wheat in the rural market and the reduction of stocks in Georgia may 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 painful for the population and therefore it is relatively "stable". I cannot tell you exactly how much the bread price will increase, it may not increase at all, although I suggest that prices may change next month”, Dolidze said.
According to the head of Georgian Bread Bakers Association, 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 GEL," Malkhaz Dolidze said.
Levan Silagava, head of Georgian Wheat and Flour Production Association explains that the trends on the local market are 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 wheats in July and now the tax amounts to $49 per ton instead of $ 25. We work with suppliers, but for some time the change on world market reflects on our market as well, "- said Levan Silagava.
