POLICY PAPER N2024/04 - RUSSIAN WHEAT POLICIES AND GEORGIA'S STRATEGIC RESPONSES

After the introduction of the floating tariff, importing wheat became more expensive, and the import price gap between wheat flour and wheat decreased to 22 percent by the end of 2021. [...] ANNUAL CHANGE IN PRICES OF WHEAT BREAD AND FLOUR (2021-2024) Wheat bread Wheat flour 50 40 30 20 10 0 -10 -20 2021 2022 2023 2024 Source: Geostat, 2024 The primary reason for this was the record increase in wheat prices, leading to a corresponding surge in wheat flour prices in 2022. [...] To limit the risks of food scarcity in Georgia in the long run, it is essential to design strategies helping the country to reduce its dependency on wheat and wheat flour imports. [...] In order for participants in the wheat and flour value chains to better plan their activities and develop the sector sustainably, it is important for the state to develop a strategy for the development of the sector in collaboration with stakeholders. [...] As the country’s wheat production is particularly important from the point of view of food security, and concurrently compared to other agricultural crops, wheat (and cereals in general) is not considered a high value crop, it is essential to develop support mechanisms for the wheat sector based on the mechanisms of the EU Common Agricultural Policy (CAP).