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FactCheckĪsked the Executive Director of the Georgian Wheat Association, Levan Silagava, to comment upon this issue. According to Mr Osipov’s statement, this is the lowest price for Russian wheat in the last six years.ĭespite the fact that wheat has become cheaper, the price of wheat flour has gone up. In total, one tonne of Russian wheat costs GEL 683 for the entrepreneur. The price of transportation, USD 25, and VAT is added to this price. If the price of one tonne of wheat was USD 215-225 in the same period of the previous year, now one tonne of Russian wheat costs USD 205. According to his information, as of July 2015 Russian wheat has become cheaper. We asked the leader of one of the top wheat importing companies in Georgia, Agricom, Koki Osipov, to comment upon the issue of wheat prices. The fact that local production has been increased has also been taken into account but this is still not enough to cover the effects of the depreciation of the national currency. Hence, it is clear that the decrease in wheat prices in USD fails to balance the price increases caused as a result of the depreciation of GEL. On the other hand, Russian wheat has become 25% cheaper thus far in 2015 whilst the price of Ukrainian wheat has decreased by 16%. The national currency has depreciated by almost 40% as compared to the same period of the previous year and its exchange rate with regard to USD has reached 2.45 (when the discussion about the bread price increases started, the exchange rate was set at 2.30). The issue of the increases in the price of bread has become so widely discussed due to the depreciation of GEL. Imports of Wheat by Country (January to July 2015)Īs Russia and Ukraine are the main sources of import, we present wheat prices in these countries by year.Īverage Annual Price for Wheat in Russia and Ukraine from 2010 to 2015 (USD/tonnes) In 2014, Russia’s share in overall wheat imports was 87.2% (494,034 tonnes), Kazakhstan’s share was 10.4% (58,984 tonnes) and Ukraine’s share constituted 1.8% (10,424 tonnes).
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Wheat is mainly imported from Russia, Kazakhstan and Ukraine. Wheat is among the ten most imported products in Georgia and its share overall constitutes 1.8%. Source: National Statistics Office of Georgia The share of local production in the overall consumption varied from 6% to 13% from 2010 to 2014. About 90% of the necessary wheat is imported.
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Source: Ministry of Agriculture of GeorgiaĪccording to the data from 2010 to 2014, Georgia consumes about 940,000 tonnes of wheat each year. Total Area Occupied by Crops (thousand hectares) and Harvest (thousand tonnes) Verified the accuracy of the aforementioned statement and studied the situation concerning the price of bread.Ībout 170,000 tonnes of wheat were harvested in Georgia in 2015 which is a record high number as compared to the past several years. If any kind of help is necessary from the state, we will support this field but the increase in the price of bread definitely defies any kind of logic." According to the statement of the Minister of Agriculture of Georgia, Otar Danelia, the increase in the price of bread defies any logic: "We must use every method available to us to prevent this from happening.