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The government is launching subsidy program of wheat import - what does the business think?

5ea04b89ef0e8
BM.GE
22.04.20 17:47
786


The government is launching subsidy program of wheat import. As a result, companies that receive a state subsidy will sell a sack of flour for a maximum of 51 GEL. So it is an expression of interest for companies, which company sets the best price will be the winner and receive funding from the state. The subsidy will be a maximum of $ 40 per t of wheat.

Beso Bezhashvili, a representative of Geomill says that in case of a $ 40 government subsidy, it is normal to set a price limit of 51-GEL on per sack of flour.

He said that wheat prices on the international market were raising sharply in recent weeks, so subsidies are needed to keep the bread prices.

"The price of wheat has been rising for the last 2-3 weeks. Along with supply problems due to the coronavirus, some countries have completely banned grain exports. Our main supplier, Russia, also imposes quotas: for example, Romania, Kazakhstan, Bulgaria, and Hungary have suspended grain export. Demand is increased, so everyone wants to get wheat from Russia as soon as possible.

Growth is about 25-30 USD per t of wheat in the last 3 weeks. Now the price is 240-245 USD, while the cost was 220-218 USD a few weeks ago”, said Beso Bezhashvil.