Azerbaijan, Baku, 4 March / Trend corr. U.Ismailova, E.Kuliyev / The price of bread has increased by 30% in Shaki City of Azerbaijan, regional correspondent of Trend reported.
The Executive Committee of Shaki invited bread producers to the meeting and stated that bread costs should not exceed AZN 0.3. Bread producers declared that the rise in the cost of bread is due to the increase of its weight.
The average cost of bread was increased from AZN 0.2 to AZN 0.3 from July 2007.
Experts explained the rise in prices to be due to internal and external factors.
Azerbaijani Cabinet of Ministers issued an order to cancel VAT on imported grain in order to prevent an increase in the price of bread in the country from July 2007. However, cancellation of VAT did not prevent the increase in price of bread.
Azerbaijan imports grain from Russia, Turkey and Kazakhstan. Azerbaijan stopped importing grain from Russia after its introduction of an additional €22 on exported grain.
Azerbaijan's yearly grain demand comprises 3mln tons. Yearly demand for bread grain made up 1.53mln tons and 129,640 tons monthly.
The Azerbaijani State passed its decision to prevent a rise in prices in November. The State has allocated AZN 40 for each sowing area to improve the production of local grain.
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