Rati Kochlamazashvili, Deputy Chairman of the Georgian Farmers' Association declares, that prices on basic product’s are expected to increase due to the reduced harvests in the world, as well as shortcomings in the supply chain due to COVID-19, unstable economic situation and war in the region.
As Kochlamazashvili told TV-program Business Morning, prices for sugar, oil and wheat are expected to increase in the coming months.
"Imports are becoming more expensive in the world due to several factors, including productivity and transport disruptions. This is even more difficult for us, as we are dependent on imports. Lari is depreciating, putting even more pressure on prices. It is noteworthy that agricultural products have become more expensive.
Price fluctuations in agriculture are influenced by 5 factors, including harvest volume, transportation, logistic, economic instability and war. However, conflict in the region is reflected on the food prices in Georgia. So the situation is not promising and it is difficult to make predictions.
However, the world food index is growing for the last four months, which is a sign that prices are on the rise," Kochlamazashvili said.
