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Experts said the record increase in the price of wheat and flour in Russia
Prices for food wheat and flour in Russia has reached historic highs, according to the Institute for agricultural market studies (IKAR). According to him, in almost all regions of Russia the price of wheat flour exceeded the records of 2016. As experts explain, the rise in price was caused by the strengthening of grain prices, and increases in VAT and utility tariffs.
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"Drivers of growth in grain prices were the regions of southern Russia, and Central and North-Western Federal district, where the price indices are the highest in the country. This was facilitated by active exports, due to increased world prices and a new round of devaluation of the ruble and high demand for wheat of all classes from the livestock and poultry sectors, which already in the fall experienced a shortage of raw materials due to the insufficient supply of grain for sale," reads a press release from ICAR.

According to the agriculture Ministry, since the beginning of the year average prices (without VAT) for wheat of class 3 has not changed and remained at level of 10 thousand 705 roubles for ton. Wheat 5 class is worth 9 thousand RUB 176 per tonne, feed barley — 9 thousand 450 rubles per ton. The price of wheat of class 4 for the two weeks of January increased by 2% to 9 956 thousand rubles per ton.

Recall from 2019 VAT in Russia was increased from 18% to 20%. According to Rosstat estimates, between 1 and 9 January, the price increase was 0.5%. The Bank of Russia expects inflation in the first quarter of 2019 at 5.5–6% in annual terms, with a subsequent slowdown.



Translated by service "Yandex.Translation"
Источники: Зерно Он-Лайн