Economy Minister: Bread Price Is up Due to Wheat Price Increase in World

Georgia’s Economy Minister, Giorgi Kobulia explains that the increase in bread price in the country was caused by the wheat price rise on the global market.

Kobulia made the statement on December 12, adding the government does not regulate price on bread products but closely observes the developments.

“The fact that the price of wheat in the world has risen, of course, increased the price of our bread. We, as the government, do not regulate the price of bread, it is commercially formulated, so if the price of wheat rises abroad, of course, it reflects the price. We observe this issue to make sure that there is no uncompetitive deal. I'll tell you about the results,” he explained.

Minister of Environment Protection and Agriculture of Georgia Levan Davitashvili also made a comment on the issue. According to him, the increase in bread price was not decided by the government.

“This year wheat is more expensive than in 2018 because there less production in exporter countries,” he said.

Moreover, Georgia’s Business Ombudsman, Irakli Lekvinadze says the increase in bread price is an economic factor and is not linked to any state regulations.

“The Competition Agency will have the results of its study on this issue. If the facts of dishonest action are identified in this direction, then it will be possible to take appropriate steps, "said Lekvinadze.

Bread price went up by around 0.10 GEL on December 10. Bakery owners and bread producing enterprises say the flour price has increased from 35-37 GEL to 47-50, which consequently affected the production prices.

One of the largest bread producing companies Ipkli released a statement two days ago, saying they increased prices of all their products by 0.10 GEL because they ran out previously purchased flour and had to pay more at this stage.

"This is the minimum adjustment of the price, which will enable the company to produce high-quality products at the best possible price," the company added.