Azerbaijan news

Will the price of flour and bread increase again?

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Russia In the third week of the attack on Ukraine, the world economy is becoming more and more gradual. Collective West and The number of sanctions imposed by its allies with large economies is close to 6,000. Almost all of Russia’s trade, exports, banks, and strategic foreign exchange reserves are under ban, and Western companies operating in the country for many years are withdrawing their capital one after another. Economists say that, a deep recession awaits the neighboring country.

As well as Russia being under the terrible fire of a military machine Ukraine The damage to the country is estimated at tens of billions of dollars, and even if the war ends soon, it will take years for Ukraine to recover and rebuild its economy.

The article was published in the British newspaper The Guardian that, Russia and Food shortages in some regions of the world in case of suspension of wheat supplies from Ukraine and will face starvation. It is stated in the article that, about this Ukraine the world due to the crisis 20The year 08 faced a price increase comparable to the situation after the global financial crisis. Russia and Disruption of supplies from Ukraine may aggravate the current situation.

UNChief Economist of the World Food Program Arif According to Hussein according to, Ukraine The consequences of the crisis will affect other parts of the world.

Meanwhile, the World Bankannounced prices in global commodity markets by the end of February. Energy carriers in the report and Food prices have risen sharply. So. that, Compared to the same period last year, coal 2.2 times, oil 2.2 times, natural gas Europe 4.5 times in the market, 40% in the US, soybean oil 37%, snowFood prices rose by 21%, wheat by 38%, beef by 35%, chicken by 69%, cotton by 53%, aluminum by 55% and copper by 18%.

“Grain and oil prices continue to rise and even 20Food of 08 and exceeds figures not seen since fuel crisis “– explained the expert.

Russia in Azerbaijan’s non-oil trade and Ukraine first and they share the second step. Azerbaijan supplies the most important food products, especially wheat, to the two countries, while sending them agricultural products. This year, Azerbaijan planned to plant grain on several thousand hectares in Ukraine on a lease basis. But the devastating war changed all plans.

Russian Customs Tariff and Subcommittee on Non-Tariff Regulation From the Russian Federation to the countries of the Eurasian Economic Union Kazakhstan, Belarus, Kyrgyzstan and Approved the decision to impose a temporary ban on the export of grain products to Armenia until August 31, 2022. According to the Ministry of Economic Development according toTo the countries of the Eurasian Economic Union, as well as sugar and The export of raw sugar outside the union is also banned.

The grain ban is in force until August 31, 2022. Wheat, rye, meslin, barley, snowalso applies to food. At the same time, Industry and Supplies under export licenses issued by the Ministry of Commerce will also be excluded. For information according tosubcommittee white sugar from Russia to third countries and also approved a decision to temporarily ban the export of raw sugar cane.

In Azerbaijan earlier this year flour and Prices for flour products rose by 33%. Last year, a 50-kilogram bag of excellent flour sold for 27 manats, now it is offered in the markets for 36 wholesale and 38-39 manats for retail. The increase in bread prices is more than 40 percent. Recall that, Russia’s share in grain imported to Azerbaijan is 83 percent.

Thus, in Azerbaijan due to the war flour The next price increase is on the agenda.

Specialist in agriculture Vahid Maharramli told Pressklub.az that, Russia’s decision on grain exports to Azerbaijan and It does not apply to countries that are not members of the Eurasian Economic Union (EEU). According to him according toThe countries of the Eurasian Economic Union, as before, easily wheat from Russia on preferential terms and meslin, rye, barley, snowwill not be able to get food:

“The Russian Ministry of Agriculture believes so that, The EEU countries have received the required amount of grain duty-free this season. The chairman of the board of the Union of Grain Exporters, Eduard Zern, said in a press release that, AII partners have long received reasonable grain volumes. Zernin also mentioned it that, Kazakhstan and Kyrgyzstan has sharply increased grain purchases following the introduction of export quotas by the Russian Federation. Alexander Korbut, vice-president of the Russian Grain Union, also told the press that, Kazakhstan received 2.5 million tons more wheat than planned. He thinks that, Russian grain transits through Kazakhstan to other markets, including Uzbekistan, which is not a member of the Eurasian Economic Union. However, Uzbekistan had to pay the export duty by importing the same amount of wheat from Russia. Thus, at a time when the price of wheat in the world market has risen sharply, the Russian government is working that, prevent the export of grain beyond the borders of the union countries and let him have these opportunities. Russian government sugar and connects the imposition of a ban on the export of raw sugar outside the union with the protection of the domestic market in the current situation. Our research shows that, In the last few days, there has been a serious shortage of sugar in the Russian market.

The expert notes that, Azerbaijan meets the bulk of its demand for food wheat, 55-60% in some years and even 70% in some years, from wheat imported from Russia: “33% of the total vegetable oil consumed in Azerbaijan and 45% of the raw sugar used for sugar production are imported from Russia. If Russia increases the export duty on wheat, Azerbaijan will increase the export duty on wheat. flourflour products and Bread prices are expected to rise.

Turqut



Azerbaijan news

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