Azerbaijani Government Cannot Regulate Bread Prices – Minister

Business Materials 20 November 2007 17:11 (UTC +04:00)
Azerbaijani Government Cannot Regulate Bread Prices – Minister

Azerbaijan, Baku / Trend corr. U.Ismaylova / The Azerbaijani Government cannot regulate the recent rise in cost of bread in the country due to the liberalization of trade in grain market lately, Ismat Abbasov, Azerbaijani Agricultural Minister, said on 20 November.

The gradual increase the cost of grain was observed in Azerbaijan from August 2007. The cost of one loaf of bread in the country constituted AZN 0.30

The Minister considers that the internal factors do not affect on cost of bread. Azerbaijan has enough quantity of grain. Some 2.3mln tons of grain was produced in the country. The annual demand in grain made up 3mln tons, 1mln ton is imported particularly from Russia and Kazakhstan.

Russia is planning to increase duties on exported ton of grain by €22. Azerbaijan suspended grain import from Russia. The cost of one ton of grain made up $240. 

The cost of whet increased by 80% in the world market.

According to Eyyub Huseynov, head of Free Entrepreneurs Union of Azerbaijan, the Government cannot prevent increase in cost of bread, which increased by 25%.

Vusal Gasimli, expert of the Economic Research Centre of Azerbaijan, said that the rise in price of bread cannot prevent due to foreign factors.

One of the relevant rise in cost of bread is the grain deficit connected with bad weather.