Georgian Wheat and Flour Producers Association released a statement explaining the reasons for the diverse wheat prices in the Georgian market.

The Association said that both imported and locally produced wheat flour is available on the Georgian market. The quality differs. The price of the imported third-class wheat is 70 Tetris (59 Tetris without VAT), while Georgian wheat is exempted from VAT, and its price per sack makes GEL 47-48.

“The growing dynamics of imported flour, with a sharply reduced price – 45 GEL/sack (with a subsequent downward trend), puts critical pressure on the price,” it said.

The Association further clarified that Russian aggression against Ukraine and Russia’s withdrawal from the Grain Corridor Deal caused the increased price on the international markets, Chicago and Paris Stock Exchange; the traffic of ships on the Black Sea in Ukrainian and Russian waters is hindered. The increased risks limited Georgian wheat’s export and caused a shrink of the price domestically.

“Georgian Wheat and Flour Producers Association notes that it takes responsibility to fully accept the harvest of Georgian wheat at the appropriate price based on the quality and pledges readiness to keep constant communication with interested stakeholders to resolve any issue,” it said.