Azerbaijani experts talk impact of current decline in flour prices on bread price

By Trend

The price of wheat imported to Azerbaijan have been declining over the past few months, Trend reports.

Some types of flour have already fallen in price in the country. Thus, Karat Holding reduced the price of a sack of 'Karmen' flour from 41 manat ($24.12) to 38 manat ($22.36). Is the price of bread expected to fall as a result?

A Trend reporter asked entrepreneurs their opinion on the matter. A number of bread and bakery shops said that the flour price went down not that much, namely in the range of 2 manat ($1.17) – 3 manat ($1.76). This would not affect the price of bread, and bread could become cheaper if the price of a sack of flour drops to 30 manat ($17.65) – 35 manat ($20.59).

Azerbaijani economist-expert Eyyub Karimli told Trend that this decline in flour prices would not affect the cost of bread.

"As a result of the decline in grain prices on the international market, the wheat prices also decreased. Grain at new prices has recently been imported into our country, which resulted in a decrease in flour prices. However, the bread price reduction, under the current conditions, is unrealistic. For baking bread, along with flour, other ingredients are also used. In addition, transportation costs, electricity costs, employee salaries are the factors that mainly affect the price," the expert noted.

Chairman of the Free Consumers Union (FCU) of Azerbaijan Eyyub Huseynov also told Trend that the flour price fall will not affect the price of bread.

"The reduction constitutes two gapiks (one cent) for each kilogram of flour, which is an insignificant amount," he said.