Kazakhstan predicts suspension of growth in flour prices

Published Jun 23, 2022

Tridge summary

The article highlights the significant increase in flour prices in the Republic, with a nearly 30% rise over the past year, impacting the cost of various food products. The Union of Grain Processors anticipates a leveling-off of these price hikes, in part due to the anticipated removal of export restrictions by Russia on July 1, 2022. This move is expected to lower the cost of grain, including wheat, and ease market pressure. Additionally, the article addresses concerns about Kazakhstan's competitive positioning in its traditional markets, particularly with intense competition from Russian flour millers. A dispute has arisen over pricing practices, with claims of domestic millers selling flour at higher prices domestically than to neighboring countries, a controversy that the head of the industry union, Eugene Gan, aims to correct by emphasizing the complexities in flour pricing and quality across domestic and export markets.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

In the summer of 2022, the rise in flour prices will stop in the Republic. Over the year, the price of it has increased by almost thirty percent. Due to expensive flour, pasta, bread, rolls and confectionery products have risen in price, KazakhZerno.kz writes. Meanwhile, the Union of Grain Processors believes that now the price of flour has risen to a peak. Most likely, in the near future it will cease to rise in price. In addition, soon, or rather from July 1, 2022, the Russian Federation will remove restrictions on grain exports to the countries of the Eurasian Economic Union (there has been no official statement on this by the representatives of the country's authorities yet). If the Russian Federation removes restrictions on grain exports, Kazakhstan will begin to receive Russian cheap grain. Because of this, prices for Kazakh wheat will stop growing. The tension that is observed in the market will subside. In recent months, competition with flour millers from the Russian ...

Source: Zol