The rise in flour prices may stop this summer in Kazakhstan. According to the Union of Grain Processors, prices have already reached their peak and will not grow in the future. According to the official statistics, the cost of flour in the country has risen by almost 30 percent over the year. The forecast, in particular, is related to the expected lifting of the current restrictions on grain exports by Russia to the EEU countries from July 1. The industry experts explain that if cheaper grain from a neighboring state appears in our market, prices for Kazakh wheat will also stop growing. Thus, the tension in the market will ease.
However, Jusan Analytics experts do not agree with the forecast of the grain processors and insist that the prices for this commodity group will still go up. In particular, that is due to the expected shortage of grain harvest in 2022. At the same time, they state that taking into account the direct impact of the cost of cereals on the production of meat, flour, bakery and dairy products, the prices of these food commodities will also rise.
Translation by Zhanna Smagulova
Editing by Saule Mukhamejanova
