Russia, one of the world’s largest wheat exporters, will introduce a quota for overseas shipments of wheat and corn (maize) limiting exports to 18 million tonnes for the period February 15-June 30.
Russia is the main supplier of grain to Georgia. Georgia imported grain worth more than 100 million USD in 10 months of 2020.
As a result of restrictions imposed by the occupying neighbor, importers in Georgia expect wheat price rise by 40 USD.
The Director of the LTD Grain Terminal in Poti, Ketevan Kublashvili declares that Russia will introduce grain export quota and a wheat export tax from February 15, 2021 and it is a very difficult issue for Georgia. She notes that wheat price will grow and reach the cost of the international market.
“The price of 1 ton of wheat totaled to 260-262 USD in December. After Russia will introduce grain export quota and a wheat export tax, the price will be around $ 300 per ton," said Ketevan Kublashvili.
Despite the expected restrictions, Kublashvili notes that there are sufficient supplies of wheat in the country and Georgia also has alternative markets.
“Georgia can buy French, Hungarian and American wheat. I do not see the problem of diversification, but price problem still remains. The price will be the same of the international market, "Kublashvili said.
According to the statistics, in the first 10 months of 2020, Georgia imported 97.5 million USD worth of wheat and meslin (448.4 thousand tons).
Import of wheat and meslin from Russia:
2018 - $ 95.8 million (483.5 thousand tons)
2019 - $ 90.6 million (430.2 thousand tons)
January-November 2020 - $ 97.5 million (448.4 thousand tons).
Corn imports from Russia are also growing. In the first 10 months of last year alone, Georgia imported corn worth 22.8 million USD, including 19.3 million USD accounted for Russian corn.
Import of corn from Russia:
2018 - $ 13.8 million (76.4 thousand tons)
2019 - $ 15.8 million (86.6 thousand tons)
2020 January-November - $ 19.3 million (107.7 thousand tons).
