Georgia’s ban on import of grains to Armenia by trucks expected to push up prices of bread
29.08.2018,
10:18
Prompted by the decision of Georgia's government to impose a ban on import and export of grains and wheat and rye flour by trucks across its territory from September 15 Armenian authorities began negotiations with Georgian counterparts in a bid to get a drop in trucking prices, Deputy Armenian Minister of Transport, Communication and Information Technology Armen Pambukhchyan said Tuesday.
YEREVAN, August 29. /ARKA/. Prompted by the decision of Georgia's government to impose a ban on import and export of grains and wheat and rye flour by trucks across its territory from September 15 Armenian authorities began negotiations with Georgian counterparts in a bid to get a drop in trucking prices, Deputy Armenian Minister of Transport, Communication and Information Technology Armen Pambukhchyan said Tuesday.
Under the Georgian ban, grains and wheat and -rye flour can be transported only by rail or sea transport. Pambukhchyan said the ban will definitely prompt an increase in the prices of flour and cereals in Armenia. He added that the Armenian side would seek that the transportation prices remain the same.
In his words, the bulk of grain and flour delivered to Armenia are brought from Russia by trucks through Georgia.
The decision of the Georgian government will have a negative impact on Armenia as Georgia is the only transit country for the Armenian side to bring in grain. Armenia currently buys wheat from Russia.
According to the Georgian Ministry of Finance, the ban was imposed because of huge lines of trucks on the border crossing with Russia. It argued that the ban would not affect the economy, and would not trigger a rise in prices. However, Georgian businessmen do not agree with this opinion. They say the ban would definitely push the bread and flour prices up making also thousands of people engaged in this sector unemployed.
According to entrepreneurs' estimates, the cost of importing 1 ton of wheat by truck is $40. The ban would raise it by at least $30.
From January to July 2018, more than $1.3 million worth grains were exported from Georgia, while imports amounted to more than $62.4 million. --0--
Under the Georgian ban, grains and wheat and -rye flour can be transported only by rail or sea transport. Pambukhchyan said the ban will definitely prompt an increase in the prices of flour and cereals in Armenia. He added that the Armenian side would seek that the transportation prices remain the same.
In his words, the bulk of grain and flour delivered to Armenia are brought from Russia by trucks through Georgia.
The decision of the Georgian government will have a negative impact on Armenia as Georgia is the only transit country for the Armenian side to bring in grain. Armenia currently buys wheat from Russia.
According to the Georgian Ministry of Finance, the ban was imposed because of huge lines of trucks on the border crossing with Russia. It argued that the ban would not affect the economy, and would not trigger a rise in prices. However, Georgian businessmen do not agree with this opinion. They say the ban would definitely push the bread and flour prices up making also thousands of people engaged in this sector unemployed.
According to entrepreneurs' estimates, the cost of importing 1 ton of wheat by truck is $40. The ban would raise it by at least $30.
From January to July 2018, more than $1.3 million worth grains were exported from Georgia, while imports amounted to more than $62.4 million. --0--
