Ban On Wheat Import/Export By Truck Postponed

  • 18-Sep-2018
  • Ban On Wheat Import/Export By Truck Postponed

The Georgian government imposed an initial ban on the import and export of wheat or wheat-rye by truck from/to Armenia on September 15; however,; the ban has since been postponed to October 1.

Armenian producers say that due to the ban, the price for all products where grain is used in one way or another, will increase. This is bread, meat, and eggs, since the feed grain for chicken and livestock is also imported in large quantities.

On September 1, the transport departments and railways of the two countries announced the reduction of railway tariffs for transportation from the port of Poti to Armenia. The reduction was 52%, but even in this case it will be 20-25% higher than transport by truck.

According to the Georgian Ministry of Finance (MoF), the ban was imposed due to long lines of trucks at the border crossing with Russia. The MoF argued that the ban would not affect the economy, and would not trigger a rise in prices. However, Georgian businessmen do not agree with this and say the ban would definitely push the bread and flour prices up and simultaneously leave thousands of people engaged in this sector unemployed. 

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