Currently, all flour mills in Georgia are closed, as stated by the executive director of the Association of Wheat Producers of Georgia, Levan Silagava, on March 14, Business Georgia reports.
"Flour producers faced problems after Russia started to increase the export duty on wheat, as a result, the import of wheat to Georgia is meaningless, and the import of flour increases," the expert said.
Also, based on the prices for wheat imported from Russia, wheat processing for Georgian producers is unprofitable, because the grain cost is high, which makes the purchases and processing unprofitable.
“The import of wheat has actually stopped recently because there is no reason. Thus, flour mills stopped buying grain, as a result, they closed,” said L. Silagava.
He believes, that prices for grain increased because of export duty for wheat in Russia: if until recently it amounted to 2%, not it has increased to 60%.