Crisis in wheat base – Will flour become more expensive?
Wheat rose 40 percent on the Chicago Mercantile Exchange last week. By the way, at the beginning of this year, the price of flour in Azerbaijan rose by about 30 percent. The country’s officials explained this by the rising price of wheat in the world. Azerbaijan depends on wheat imports. In this case, flour again in Azerbaijan and Is bread expected to rise in price? What steps should the Azerbaijani government take now?
“Russia and Ukraine accounts for 30% of world wheat exports
Milli Assembly Economic policy, industry and Member of the Entrepreneurship Committee Rufat Guliyev “Turan”He said that, The rise in wheat prices is due to Russia’s military intervention in Ukraine: “Russia and Ukraine provides 30% of world wheat exports. The second issue is the huge sanctions imposed on Russia by the West. Russia Some banks have separated from SWIFT (Global Interbank Financial Communications Association), there are problems with the currency convention, in Russia dollars It has risen in price by 80 percent.
Deputy noted that, This is in terms of grain harvest and sowing in Ukraine and even lost next year: “The last factor that has a negative impact is the disruption of logistics corridors. Most of them passed through Ukraine and some through Russia. And now the war and sanctions according to The rhythm of transport companies is disrupted, the cost of services is rising sharply. All of this eventually results in wheat, bread, flour caused the rise in prices. “
“We will have to change the supplier”
As for Azerbaijan, the committee member said that, The country’s strategic reserves are projected for at least eight months: “Nevertheless, the government was dealing with this issue even before the war began. and is still busy. We are wheat and we will have to change the supplier in other products. ”
According to R. Guliyev according toMany food products to Azerbaijan Ukraine and It comes from Russia: “Besides, 30% of mineral fertilizers for agriculture come to Azerbaijan from Russia. However, this whole process will affect not only Azerbaijan, but the whole world. There are already forecasts that the world’s gross domestic product (GDP) will fall by at least 1 percent. And this is tens of trillions dollars it means. ”
“There should be no official entrepreneurship”
Economist and businessman Nazim Baydamirli told RFE / RL that, In recent years, Azerbaijan has continued to increase its purchases of food wheat from Russia: “As a result, in many cases, domestic production is not stimulated. Entrepreneurship to stimulate domestic production free There should be no official entrepreneurship. ”
He says that, In recent years, agricultural lands in the regions are usually local execution It is given to people close to the authorities: “It is visible that, different companies are created and that those who run the companies have nothing to do with agriculture according to There are enough problems in this area. “
“Price increase is expected”
According to the economist according to, Russia The government currently imposes a quota on food sales: “In addition to the excise tax, a quota has been set. In war-torn countries, certain limits are usually applied to food and administratively prohibit the export of consumer goods. That’s what is expected that, If there is such a shutdown for a long time, there may be a problem with the food wheat we buy from Russia and price increase is expected.
N. Baydamirli noted that, Azerbaijan can buy wheat from other countries: “But our logistics capabilities are not so wide. I consider that, We need to expand trade relations with Kazakhstan in terms of food wheat.
To the critical views voiced in the article, for now, the Ministry of Agriculture and local execution It was not possible to get a response from the authorities.
Reminder
On February 24 this year, Russia launched a new attack on Ukraine. Even a few days before this war Russia Ukraine separatist “Donetsk People’s Republic” and He recognized the independence of the Luhansk People’s Republic. Six years ago, it annexed part of Ukraine, Crimea. At that time, sanctions were imposed on Russia. After the new war, the West and Some countries have expanded sanctions on Russia.