SCPEC confirms rising bread and flour prices

YEREVAN, September 20. / ARKA /. Armenia’s anti-trust body has confirmed today that local traders have raised prices of flour and bread. The Stare Commission for the Protection of Economic Competition (SCPEC) said the prices of bread have risen by 10-20 drams over the last two weeks.

SCPEC chairman, Artak Shaboyan, blamed the rise on mounting price of flour at international markets. He also said the drought-stricken Russia will have less wheat to supply domestic and export markets this season than it did in the 2010/11 crop year.

Shaboyan further said there are hundreds of bakeries in Armenia and there are no competition problems. He said pricing in this market is free and the largest wheat importers Alex Grig and Manana Grey are being tightly watched by the SCPEC.

According to the Central Bank of Armenia, wheat prices rose in August by 1.1 percent from July. In July they grew by 25 percent and overall the wheat price over the last 8 months surged by 30 percent, resulting in a 5.2 percent rise in Armenian bakery products.

According to Armenian newspaper reports, the price of 1 kg of flour at Yerevan stores in September increased by 20 - 30 drams, reaching 280 - 290 drams. In the Russian port of Novorossiysk, where Armenian companies buy most of the wheat, the price of a ton of 4 grade wheat in September alone rose from $240 to $265. -0-