Lari continues to fall: will bread become more expensive in Georgia

2020/09/54506-1601020531.jpg
Read: 882     11:00     25 Сентябрь 2020    

There are a number of economic measures, including subsidies, to which the country's leadership can resort so that the increase in the price of bread does not affect the population painfully, the expert believes.

In Georgia, they started talking about a possible increase in bread prices – concerns about this appeared due to the depreciation of the national currency, which has fallen by 6.3% against the dollar since the beginning of September.

The national Bank, in order to stabilize the foreign exchange market, has already held 14 auctions in six months, where it sold more than $ 400 million. The anti-record of the lari was recorded on March 27, 2020, when the national currency fell to the level of 3.4842 GEL/$1.

Chairman of the Union of bakers of Georgia Malkhaz Dolidze said that bread prices in the country, despite the depreciation of the lari, have not yet increased and enterprises are working steadily.

"There was a stir in Tbilisi about changes in bread prices. We are well aware that the lari has depreciated, food prices have changed, but I want to confirm that the price of bread and flour has not changed yet, and businesses are operating steadily throughout Georgia," Dolidze told reporters.

The Chairman of the Union of bakers of Georgia stressed that the price of bread will not increase if the current situation persists and there is stability.

"But if it turns out that the price has increased for everything – grain, flour, electricity, water, in this case, we can assume an increase in the price of bread to 10 tetri," he said.

In April 2020, the government of Georgia approved a program for subsidizing wheat and first-grade flour, the purpose of which was to maintain prices for flour and wheat. The authorities planned to spend 5.2 million lari (about $ 1.6 million) on the program.

The last increase in bread prices occurred in Georgia in December 2018. Producers attributed this process to the increase in the cost of grain on world markets.

Sputnik-georgia.ru





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Lari continues to fall: will bread become more expensive in Georgia

2020/09/54506-1601020531.jpg
Read: 883     11:00     25 Сентябрь 2020    

There are a number of economic measures, including subsidies, to which the country's leadership can resort so that the increase in the price of bread does not affect the population painfully, the expert believes.

In Georgia, they started talking about a possible increase in bread prices – concerns about this appeared due to the depreciation of the national currency, which has fallen by 6.3% against the dollar since the beginning of September.

The national Bank, in order to stabilize the foreign exchange market, has already held 14 auctions in six months, where it sold more than $ 400 million. The anti-record of the lari was recorded on March 27, 2020, when the national currency fell to the level of 3.4842 GEL/$1.

Chairman of the Union of bakers of Georgia Malkhaz Dolidze said that bread prices in the country, despite the depreciation of the lari, have not yet increased and enterprises are working steadily.

"There was a stir in Tbilisi about changes in bread prices. We are well aware that the lari has depreciated, food prices have changed, but I want to confirm that the price of bread and flour has not changed yet, and businesses are operating steadily throughout Georgia," Dolidze told reporters.

The Chairman of the Union of bakers of Georgia stressed that the price of bread will not increase if the current situation persists and there is stability.

"But if it turns out that the price has increased for everything – grain, flour, electricity, water, in this case, we can assume an increase in the price of bread to 10 tetri," he said.

In April 2020, the government of Georgia approved a program for subsidizing wheat and first-grade flour, the purpose of which was to maintain prices for flour and wheat. The authorities planned to spend 5.2 million lari (about $ 1.6 million) on the program.

The last increase in bread prices occurred in Georgia in December 2018. Producers attributed this process to the increase in the cost of grain on world markets.

Sputnik-georgia.ru





Tags: