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Bread prices may increase in Georgia

Business Materials 11 February 2021 14:30
Bread prices may increase in Georgia

BAKU, Azerbaijan, Feb.11

By Tamilla Mammadova – Trend:

The Georgian government adopted a resolution to cover half of the difference between the increased and the previous tariff for 20 industries, said Malkhaz Dolidze, chairman of the Georgian Baker's Association, Trend reports via Georgian media.

To receive the subsidy, companies had to complete an application on a special website before January 27.

According to Dolidze, most bread producers have received electricity bills at the new higher tariff.

“On January 12, the state adopted a resolution on partial subsidizing of electricity tariffs for producers. The electricity tariff increased by 11 tetri (3.33 cents), and bakers should have received a subsidy of about 5 tetri (1.51 cents), so not to increase the price of the product, ”Dolidze said.

He confirmed that this increase in tariff will directly affect the cost of the product, especially since the prices of yeast, fats and salt are increasing.

“The price of bread will not change until April, but it will grow later. We promised the state, and we must fulfill this promise, but the increase in the electricity tariff will affect the cost of the product and production. I will also say that if the state had not subsidized the price of flour today, the price of bread would have increased by 20-25 tetri (6.05-7.56 cents),” Dolidze explained.

At the end of January, the Georgian government decided to increase the subsidy for a 50 kilogram bag of first grade flour from 10 to 15 lari ($3.02-$4.54) in order to prevent an increase in bread prices.

The subsidy program began in December and is designed for 4 months. For mills, a fixed price is set for a 50-kilogram bag of first-grade flour at 53 lari (about $16.2).

In total, the state plans to spend 10 million lari (more than $3.1 million) to subsidize wheat flour.

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