Russian wheat export ban may affect prices in Georgia

As previously reported, on August 15, 2010 Russian PM Vladimer Putin banned the export of wheat from Russia until the end of this year. The World Bank has asked other wheat exporting countries not to ban exports of the product from their countries as it may lead to a global crisis in the world food market, which will particularly hurt poor countries. The Russian ban will primarily hurt importing countries. The association of wheat producers of Georgia stated that from September bread price in Georgia will increase by 3-5 tetri, since, as Minister of agriculture, Bakur Kvezereli mentioned, Russia’s decision will be painful not for Georgia but for the rest of the region. While Georgia can import wheat from the USA, Canada or European countries, it will however be more expensive; Russian wheat costs USD 260 per tonne, whereas wheat from other origins will cost USD 350-380 per tonne, which will considerably affect the price of bread and flour.