The floating export tax on grain and oil has been reduced in Russia, on the one hand, it is related to the opening of the Ukrainian corridor, while on the other - excessive harvest. Since September, the tax on sunflower oil has decreased from USD 270 to USD 144, while on wheat flour from USD 38 to USD 26, and on wheat - from USD 100 to USD 56.
The reduction of the floating tax has already been reflected in the price of the products for sale.
As the head of the Association of Wheat and Flour Producers of Georgia, Levan Silagava, said the price of 50 kg high-quality flour decreased from GEL 85 to GEL 74.
Based on this background, there is an expectation that bread prices should decrease, however, the head of the union of bread producers, Malkhaz Dolidze, says that the sector is not talking about a price decrease at this stage. Dolidze explains that since July, producers have not increased the price in accordance with the grown utility bills, so there is no resource for discounts today.
"Natural gas price has increased from GEL 0.86 to GEL 1.38, water tariff from GEL 4.40 to GEL 6.50. In addition, yeast and everything have become more expensive. Utility expenditures exceed wheat price decrease. Expenditures for 50 kg wheat have almost increased by 4-5 GEL, so I can't say for sure that the price will drop today or tomorrow. A few entrepreneurs said that it is possible to adjust the price within about 10 tetri, but I can't say that for sure. The entrepreneur is always interested in reducing the price and taking advantage of the market, but in July the utility costs were not fully reflected in the price. The second question, if we reduce the price, will the supermarkets reduce it? First of all, you should ask them, the supermarkets will put it in their pocket, tomorrow I am afraid that they will get the profit of 10 tetri themselves," said Malkhaz Dolidze.
