17:36 - 10.07.2023
July 10, Fineko/abc.az. As of the end of June, the price fell by 2.1%, ABC.AZ reports, quoting expert economist Khalid Kerimli.
According to Kerimli, this means a decrease of 24% versus Jan-Jun 2022.
"Grain prices also show a decrease in wheat prices. As of June, wheat prices fell by 1.3%. One of the main reasons for this is that high yields are expected in some states of America. At that, the yield in Russia was high. Due to the abundance of wheat, Russia has also reduced the export tax."
According to the expert, all this may affect the prices of flour in our country a few months after its cheapening.
"This decrease may be possible in 6-9 months. Because entrepreneurs engaged in the milling business form stocks of flour in advance. Currently, we are also seeing a slight decrease in flour prices. As 95% of the cost of flour is wheat. Even in this case, the decline in wheat prices also affects the price of flour. But in order for the cheaper flour to affect the price of bread, it takes some time. We do not see a reduction in the price of flour in the price of bread. There are reasons for this, too. In bread, the cost infrastructure becomes different. If 45-50% of the raw material costs in the production of bread were for flour, then other expenses are personnel costs, transportation, storage, utilities, which do not greatly affect bread, since it does not get cheaper. We can see the impact of flour prices on bread prices in one case, which depends on the situation when the agreement on the grain corridor, which expires on July 17, will be extended," Kerimli said.
