Works on wheat subsidy program by the government to keep the current bread price is suspended. Vladimer Bidzinashvili, the head of mill factory Baraka declares.
Wheat Importers and flour producers urge the government to put in place appropriate mechanisms to reduce the wheat imports in the country and offset the growth of flour imports since September 2021.
Lado Bidzinashvili explains that the prices of wheat hit a record high in the international market and, consequently, the price of flour has increased in Georgia.
"Some decisions were made regarding the subsidy, but according to my information, the process of working on the subsidy has been suspended.
Wheat prices hit record high in the international market. The cost of 1 ton of wheat ranges from USD 400 to USD 420. Bread producers are able to maintain the price due to the increased wheat imports from Russia. In 2-3 weeks, the price of 1 bag of flour has increased to GEL 80," said the head of Baraka.
According to him, the priority for local mills is to be on equal terms with flour importers.
"It is important for us that market policy is healthy. When the export tax on wheat is up to USD 100, and flour imports turn out cheaper, it is important for us to impose a certain tax on the flour imports, or have a privilege to compete with the flour imports.
Today, several mills are stopped, and the rest are working at 40-50% load, "- said Bidzinashvili.
According to him, Baraka mill is operating at a 60% load today at the expense of increasing wheat imports from Kazakhstan. Lado Bidzinashvili declares that the company has communication with new suppliers in order to diversify its wheat suppliers.
