Home / Business / Georgian Wheat Importers Expect Stable Prices
Georgian Wheat Importers Expect Stable Prices

Georgian Wheat Importers Expect Stable Prices

The Russian government lifted  an export duties on grains and the Georgian importers expect stable prices for flour and bread.

CBW was told by Levan Silagava, the head of the Association of Bakery Producers. According to him, this is a very positive decision not only for Georgia but for the global wheat market.

“This year there was a good harvest of wheat, and it  has become more difficult for Russia to export its products at a high price. For this reason Moscow was forced to  abolish  export duty. As a result, Russian grain will be sold  on the world market at reasonable prices,” he notes.

On February 1, 20145 Russia abolished export duty on wheat  which was 15% of the customs value plus 7.5 euros, but not less than 35 Euro per ton.

At the same time, in order to create internal resources and employ the local workforce, the Russian government has stimulated the development of processing plants for the purpose of flour export growth. In Levan Silagava’s words, Russia’s share in Georgia’s overall wheat imports makes up  90%.