The impact of recent global economic processes and the COVID-19 pandemic, rising demand for food wheat in world markets in 2021 and various protectionist measures taken by wheat-producing countries to protect the domestic market have led to a sharp increase in wheat prices. In addition, due to the imposition of high export duties by the Russian Federation, one of the largest producers of wheat and the main source of wheat exported to Azerbaijan, from February 2021, the price of food wheat imported to our country increased by about 58% compared to 2019.
It is important to emphasize that food prices in Azerbaijan are formed not on the basis of regulated tariffs on wheat, flour and bread, but on the basis of supply and demand in accordance with the principles of a market economy. In order to reduce the impact of the sharp rise in food prices on Azerbaijan in 2021, the government has ensured that wheat and flour prices remain below real prices through large subsidies. Naturally, it is impossible to keep these prices unrealistic in the long run, contrary to liberal economic requirements, due to subsidies.
As a result, since the beginning of this year, the price of flour has been adjusted to the current import price of food wheat by businesses engaged in the supply of food wheat and flour production. As a precautionary measure to prevent price manipulation in the sales market, the State Service for Antimonopoly and Consumer Market Control under the Ministry of Economy held discussions with a number of major wheat importers, as well as flour and bread producers, and ensured control of the process.
Thus, taking into account the import prices and processing costs, the real price of this product has been formed. The maximum price has been set by flour and bread producers: wholesale price of a 50 kg bag of flour - 35.9 manat, 500 g of traditional ( retail price of round bread - 50 qapiks, retail price of 650 grams of traditional (round) bread - 65 qapiks.
The State Service continues to take strict control measures to ensure compliance with price limits. According to the results of the first days of monitoring, the wholesale price of flour varies between 35.4 and 35.9 manat.
Currently, the State Service is preparing a regularly updated database of flour producers' wholesale centers and outlets, opening hours and wholesale prices, which will be made public today.
In case of price manipulation in the flour and bread market, consumers can also apply to the State Service to obtain relevant information: contact phone: (+99412) -599-76-00.
A meeting was held at the National Assembly’s (Milli Majlis) Committee on Economic Policy, Industry and Entrepreneurship
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