Bread prices in Georgia have recently risen by about 10 tetri, with the increase mainly affecting products produced by the company Ifkli. According to the Bread Producers Association, the key reasons behind the price hike are higher employee wages and the growing cost of flour. However, the head of the Flour Producers Association, Levan Silagava, says that flour prices have remained stable for the past month and a half.
Currently, a 50-kilogram bag of flour costs between 58 and 60 GEL, a price that has not changed for six weeks. Silagava explains that the previous benchmark price of 52 GEL per bag, under which bakeries could maintain stable bread prices, has long been outdated. He noted that bread producers typically begin discussing price adjustments only when flour prices reach around 63 GEL per bag.
โWhen we talk about the 52 GEL price, that was a year and a half ago,โ said Silagava. โSince then, bread prices have increased by 10 tetri, which already reflects the higher cost of flour. Over the past month and a half, the price of flour has been between 58 and 60 GEL, so thereโs no recent change. Thatโs why we donโt quite understand why this issue has emerged now. More consultations are probably needed, initiated by the Ministry, to get a full and accurate understanding of the situation.โ
Silagava also expressed regret that the associationโs earlier proposal to introduce a โbread price indexโ was not adopted. He believes that regularly publishing data on ingredient costs and operational expenses would allow the public and policymakers to better understand what drives changes in bread prices. โIf we could track and compare these figures monthly,โ he said, โit would make the picture clearer and help explain why such price fluctuations occur.โ
