BAKU, Azerbaijan, Jan. 4
Major producers of flour and bread made an appeal regarding price changes in Azerbaijan, Trend reports.
"Currently, given the need to continue the activities of flour producers and imports of wheat to provide the country with this strategic food product, there is a need to adjust flour prices in line with current global wheat prices in order to prevent the threat of a shortage. A 50-kg sack of flour can grow in price to 36 manat ($21), and, consequently, the price of a traditional loaf of bread will grow by a maximum of 10-15 gapik (5.8-8.8 cents)," the appeal said.
"Due to the ongoing global negative processes, uncertainty, pressure on production and the supply chain, as well as due to the COVID-19 pandemic, food prices have sharply increased in the world. These processes have also affected the cost of food wheat, which is imported to Azerbaijan from Russia,' the appeal noted.
"Due to the rise in prices on the Russian market, these products are supplied to Azerbaijan at higher prices. Besides, the introduction of a high export duty from February 2021 in Russia also seriously affects the rise in prices," the appeal further said. 'In December 2021, the average monthly export price of one ton of milling wheat in Russia grew by 58.7 percent compared to the same period in 2019 and by 33.1 percent compared to December 2020."
"To reduce the negative impact of the global rise in prices on the Azerbaijani market, the state has provided great support to importers and producers of flour throughout the year," the appeal reminded.
The appeal stressed that in order to bring food wheat stocks to the required level from 2020, subsidized loans are allocated to procurers in Azerbaijan.
"Additional subsidies have been paid to flour producers since February 2021, the import and sale of milling wheat, as well as the sale of flour and bread, have been exempted from VAT," the appeal noted. "As a result of the support provided to us, entrepreneurs, the global price changes haven’t very seriously affected the Azerbaijani market, allowing keep the wholesale price for a 50-kg sack of flour at the level of 26 manat ($15.3)."
"Given that the existing subsidy mechanism was in effect until the end of December 2021, it became necessary to bring the price of flour in line with the current price for milling wheat in order to continue its import and the activities of flour producers, reliably provide the country with this strategic food product and prevent the threat of a shortage," the appeal said.
"Realizing our important role in the food supply of citizens, we declare that if the price of flour is brought in line with the current price of milling wheat, we’ll mobilize all efforts so that the price of bread and flour products doesn’t rise higher than the specified level before the grain harvesting and procurement season in 2022. We call on all participants in the food supply chain to show solidarity with us," concluded the appeal authors.