Georgian Railways to apply a system of discounts on imports of grain to Armenia
29.08.2018,
18:33
Armenia’s Ministry of Transport, Communications and Information Technology reported today that the Georgian Railway agreed to apply a system of discounts on grain and flour imports to Armenia.
YEREVAN, August 29. /ARKA/. Armenia’s Ministry of Transport, Communications and Information Technology reported today that the Georgian Railway agreed to apply a system of discounts on grain and flour imports to Armenia.
Georgia's government said earlier this week it will impose a ban on imports and exports of grains and wheat and rye flour by trucks across its territory from September 15. It said grains and wheat and -rye flour should be transported only by rail or sea transport.
Deputy Armenian Minister of Transport, Communication and Information Technology Armen Pambukhchyan said Tuesday that in order to prevent the increase in transportation costs Armenian authorities began negotiations with Georgian counterparts in a bid to get a drop in transportation prices. According to the ministry, the system of discounts proposed by Georgia’s Railways for Armenian forwarding companies will keep the prices at their previous level.
The Georgian Ministry of Finance said earlier 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--
Georgia's government said earlier this week it will impose a ban on imports and exports of grains and wheat and rye flour by trucks across its territory from September 15. It said grains and wheat and -rye flour should be transported only by rail or sea transport.
Deputy Armenian Minister of Transport, Communication and Information Technology Armen Pambukhchyan said Tuesday that in order to prevent the increase in transportation costs Armenian authorities began negotiations with Georgian counterparts in a bid to get a drop in transportation prices. According to the ministry, the system of discounts proposed by Georgia’s Railways for Armenian forwarding companies will keep the prices at their previous level.
The Georgian Ministry of Finance said earlier 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--
