Bread price in Armenia lifts by 10 drams- newspaper

YEREVAN, July 20./ARKA/. The recent surge in global prices for grain resulted in rise by 10 drams in the cost of bread in Yerevan, Orakarg newspaper (Agenda) reports on Friday.

According to the source, this tendency will spread over other productions too.

Director of Manana Grain importer company (share in market is 34.4%) Gurgen Nikoghosyan said in the interview with the newspaper that on July 18 the cost of 1 kg best quality flour in Armenia jumped by 10.76 drams, first quality – by 10 drams, and second quality- by 5 drams. The increase in prices was touched off by boost in global prices for grain and strong U.S. dollar, according to the source. Armenia consumes nearly 730,000 tons of wheat annually 60-70% of which comes from import. 

Thereby, any negative course at the foreign markets will impact the Armenian domestic market. Nikoghosyan also highlighted that it was possible to maintain prices up to now due to grain stockpiles. However, Armenia has already imported some more expensive grain and now in spite of the existing stockpiles it will be impossible to save the old prices. 

It is surprising, however, that bread prices in bread workshops went up by the same notche as those of flour. 

This is quite strange. If we consider that the net cost of flour in bread production is 30-50%, the prices for bread should have risen just by 3-5 drams as grain prices upped by 10 drams. However, according to the source, boost in bread prices by 10 drams has its own objective reasons. 

Armenia doesn’t have coins with minimal value lower than 10 drams, and if bread producers increased prices just by 3-5 drams, they wouldn’t be able to give change to buyers. 

As of June 15 1 ton of grain at London stock exchange cost 192 dollars, yesterday November futures reached 233 dollars.

According to July’s forecasts filed by the U.S. Department of Agriculture the volume of global grain production tumbled by 6.7 million tons to 665.3 million tons from May. At the same time, grain harvest in Russia slipped by 4 million tons to 49 million, and in Kazakhstan- by 2 million to 13 million tons. —0--