Georgia has been consuming mainly Russian wheat in recent years. Due to the significant increase in the price of wheat in the international market, including in the region, which is due to the intensification of stockpiling by import-dependent countries, Russia is considering imposing quotas on wheat exports.
"Russia has already announced that from January 1, 2021, that the quota mechanism will work again for 6 months, because in the event of a pandemic, countries try to maintain more stocks, and those countries that do not have wheat, on the contrary - to create more stocks. This is causing tensions in world markets. Serious tenders have been announced, and if we look at the analytics, every country is increasing its stocks by an average of 30%.
We have been dependent on Russia for the last three years. 104 countries depend on Russia. Today Russia has a competitive price compared to others; however, if Russia has introduced quotas, the markets are free. We have access to the markets of Ukraine, Kazakhstan, the European Union, but in all these markets the price is higher than in Russia, and that is why it is imported from Russia because logistics is cheaper, "- said the head of the Association of Wheat Growers Levan Silagava.
For his part, the head of the Poti grain terminal says that Russia uses quotas to speculate, and despite this statement, there will be no shortage of wheat. According to her, Georgia can import strategic products from other markets, although it will have a price.
"We rule out a shortage in the wheat market because there is a large harvest in the producing countries, and it is in their interest to sell as much wheat as possible. Russia's trick, which is to impose quotas, is a constant topic manipulated every year. Quotas may happen, but this does not mean there will be a deficit and will not lead to an increase in prices. In December, we expect 27 thousand tons of wheat to flow from the alternative market. That is, buying on the free market will not be a problem. Consequently, there will be no deficit, even if Russia bans it. It is possible to buy it in other countries at the price of the international market, but due to the difference between the prices of transportation, it will increase the price of wheat for us, "- said Ketevan Kublashvili.
