Reason For Decline In Bread Prices In Azerbaijan Announced

2023-10-28 03:11:14

(MENAFN- Trend News Agency) BAKU, Azerbaijan, October 28. As previously reported, the price of 650-gram round (factory-made) bread in a number of retail chains decreased from 0.35 cents to 0.32 cents from October 26.

A decrease in prices is observed in Bravo, Bazarstore, Al, Araz, OBA, Neptun, Rahat, Sarı, Alvadi, Grandmart, Bolmart, Megastore, Bizim market, Baqqal, the Cabinet of Ministers of Azerbaijan told Trend on Saturday.

This is already the third decrease in bread prices this year. Thus, in March of this year, the price of bread decreased from 0.41 cents to 0.38 cents , and in June - from 0.38 cents to 0.35 cents. The price of round (factory-made) bread weighing 650 grams decreased by 21.4 percent over the year.

But what is the reason for the decline in bread prices?

Over the past few months, food wheat prices have decreased on world markets, especially in Russia and Kazakhstan, which are the main import markets for Azerbaijan. In October of this year, the average monthly cost of imports of food wheat was $230.9, which is approximately 28 percent lower than in October 2022 ($320.4). According to international forecasts, wheat production will increase this year.

The reason for the decline in bread prices can also be attributed to the decline in wholesale prices for flour. ccording to information dated October 26, 2023 on the official website of the State Service for Antimonopoly Supervision and Control of the Consumer Market under the Ministry of Economy, which monitors the anti-inflation measures implemented in the republic, the wholesale price of a 50-kilogram bag of flour ranges from $15.54 to $16.78.

It was noted that the price of food wheat, flour and bread in Azerbaijan is formed not on the basis of regulated tariffs, but on the basis of supply and demand in accordance with the principles of a market economy and on the basis of prices for food wheat on the world market (including the main import markets). In accordance with the principle of supply and demand, a decrease in the wholesale price of flour on the domestic market directly affected the price of bread.

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