The Question of Bread and Increase in Price of Wheat

“This year, we’re expecting an overall of 280,000 tons of grains, of which 120–130,000 tons will be wheat, as compared to an overall of 370,000 tons last year,” said Minister of Agriculture Gerasim Alaverdyan, speaking with journalists today on the price of wheat. 

The minister stated that countries around the world have experienced issues related to the quantities of wheat production. According to him, a program to develop seed growing or farming is beginning in Armenia. 

“Until September 20, 950 tons of elite seeds from the Russian Federation will be in Armenia; we will purchase an additional 500 tons from local seed producers,” said Alaverdyan.  

For the next 2–3 years, said Alaverdyan, foreign imports have declined and the number of local seed producers have grown.

“At the end of the program, in 2014, in the Republic of Armenia, we’ll produce 3,000–3,300 tons of elite seeds each year,” said Alaverdyan. 

Asked, in that case, what is the increase in price conditioned by, the minister said the market determines the price. He addeded that he has recently met with the directors of eight large companies that import wheat for consumption.

“These companies assured us that there won’t be a significant increase in the price in the near future,” he said, but, the minister asked, how can the price of bread not go up when “the prices of goods are being raised outside [of Armenia]?”

Asked why the prices are increasing in Armenia when the opposite is taking place in other countries, Alaverdyan said that negotiations are being carried out with Russia and Ukraine on the Republic of Armenia importing a certain batch of wheat for consumption.