Georgian Government discusses the opportunity to import the wheat from European and American markets instead of Russia. For this moment the best offer comes from Hungary, says Head of the Association of Bakery Producers, Levan Silagava.
After Russia has decreased the wheat export to foreign markets including Georgia, Georgian government started to fill and increase the wheat stocks. To achieve this goal, experts say, it is important to expand local wheat production. Meanwhile, 90 % of imported wheat in Georgia is Russian.
“Georgian Government is going to import European and American wheat by its own resources, because one or two company will not be able to handle this process,” Silagava said. “We are thinking about to import American wheat and then to sell it to the mills and fill the supplies this way. We were discussing the opportunity to import wheat from Kazakhstan but the price of Kazakh wheat is very high. We have offers from European countries with lower price,” he added.
“Having the wheat supplies is very important for any country as it is a strategically important product such as oil, gas or energy efficient products. Every government tries to fill the wheat supplies. During the 2008 global economic crisis, the United Nations has adopted a recommendation that any country should have 12 % of the consumption of wheat supplies,” Silagava said.
“In Georgia the situation became tenser since Russia has decided to reduce its export markets because it faced the problem of filling the stocks. During the last two years Russia was our main supplier as it used to offer the best price. But it does not mean that we are completely depended on Russian market. For example, three years ago we have imported 80 % of wheat from Kazakhstan because that time this country offered the most acceptable price,” he added.
Nowadays, the minimum price of one sack of flour is 35-36 Gel but it might reach 45 Gel as the price of wheat in Russia has already increased by 50%. However, Silagava believed that price on bread would not increase in Georgia as the country had enough supplies of wheat.
(Source – http://www.blackseagrain.net/novosti/georgia-may-import-wheat-from-europe-and-us-instead-of-russia)