17:00, 29 January 2011

Bread to grow in price in Armenia

Because of the rise of global prices for wheat, Armenia may face another increase in bread prices, local experts predict.

According to economist Samvel Avagyan, in order to mitigate social upheavals, leaders of the countries of North Africa and Brazil are buying wheat in huge volumes. In its turn, the EU exports less wheat than in previous years, thus creating excitement in international markets. These two factors, according to experts, play an important role in the expected rise in bread prices in Armenia.

"The worlds wheat prices went up by 10 percent; and this will cause the bread price growth in Armenia," the expert said. "In particular, in Ukraine a ton of whet went up from 250 to 300 US dollars; in Poti it is sold at 400 dollars per ton instead of previous 330."

According to the Ministry of Agriculture, the domestic demand for wheat in Armenia makes about 650-750,000 tons. Russia is the main grain importer to Armenia, from where some 300-400,000 tons of grain arrives annually.

Author: Lylyt Ovanisyan

Source: CK correspondent