{"id":449418,"date":"2021-05-20T19:09:11","date_gmt":"2021-05-20T19:09:11","guid":{"rendered":"https:\/\/www.moldova.org\/en\/?p=449418"},"modified":"2021-05-22T10:32:32","modified_gmt":"2021-05-22T10:32:32","slug":"are-there-reasons-and-concerns-about-rising-bread-prices","status":"publish","type":"post","link":"https:\/\/www.moldova.org\/en\/are-there-reasons-and-concerns-about-rising-bread-prices\/","title":{"rendered":"Are there any reasons and concerns about rising bread prices?"},"content":{"rendered":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p>Bread prices have slightly increased in the Republic of Moldova and, as it seems, are about to go up even more in the next period. Producers of the essential product claim that the price of flour, packaging and fuel have increased &#8211; that being the main cause of any present or future price changes. Some experts said that, in fact, prices didn&#8217;t rise, they were rather adjusted, which should have happened a long time ago. <em>&#8220;Manufacturers who had stocks, kept the old prices, those who didn&#8217;t have such stocks had to rise the prices,&#8221; <\/em>Head of the Bakers&#8217; Association of Moldova <a href=\"https:\/\/tv8.md\/2021\/05\/14\/video-painea-produsa-la-un-combinat-de-panificatie-mai-scumpa-cu-circa-70-de-bani-explicatiile-producatorului\/\">said<\/a>.<\/p>\n<h3>Wheat exports<\/h3>\n<p>Vice-President of Parliament, <strong>Alexandru Slusari<\/strong>, <a href=\"https:\/\/fb.watch\/5B4qyZv2sn\/\">stated<\/a> repeatedly that the reason for the increase in bread prices would be the export of wheat, operated by some Moldovan businessmen, that leading to the impoverishment of the state supplies. The MP asked the president of the Republic of Moldova to convene the Supreme Security Council (SSC) on the subject of wheat export, <span style=\"color: #993300;\">which would have been made possible with the help of the Information and Security Service (ISS) and members of the Moldovan Government<\/span>. Alexandru Slusari made allegations of pressure applied by state institutions and customs service for issuing the documents necessary for export, even if they included false information.<\/p>\n<p>Afterwards, <strong>Mihai Popsoi<\/strong>, another opposition MP, <a href=\"https:\/\/www.facebook.com\/mihai.popsoi\">posted<\/a> a copy of a phytosanitary document issued for the export of 6600 kg of wheat through the Giurgiulesti port (located in the south of the country) and accused the socialists of performing illegal exports. <em>&#8220;The state supplies subordinated to Minister Voicu releases the wheat, National Agency for Food Safety, which is controlled by Igor Dodon issues authorizations, Minister [of Agriculture, Ion] Perju does not see the need to ban the export, although the Supreme Security Council insisted on this measure,&#8221;<\/em> explained the MP. He claimed that all these actions were meant to increase bread prices and blame the president for that. <em>&#8220;All these actions also provide profits of millions to oligarchs close to Dodon,&#8221;<\/em> Mihai Popsoi added.<\/p>\n<p><iframe style=\"border: none; overflow: hidden;\" src=\"https:\/\/www.facebook.com\/plugins\/post.php?href=https%3A%2F%2Fwww.facebook.com%2Fmihai.popsoi%2Fposts%2F10159036728815053&amp;show_text=false&amp;width=500\" width=\"500\" height=\"498\" frameborder=\"0\" scrolling=\"no\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p><em>&#8220;Three companies increased their prices of bread at the same time. Is it a cartel? I don&#8217;t know, state institutions have to tell us. Is it political? I think so. Someone is trying to blame the socialists for trying to export wheat. [&#8230;] The Moldovan Government is provisional, Parliament is dissolved, the only institution that works is the President&#8217;s Office,&#8221;<\/em> socialists <a href=\"https:\/\/www.privesc.eu\/arhiva\/94858\/Briefing-de-presa-sustinut-de-fractiunea-PSRM\">replied<\/a>.<\/p>\n<p>Minister of Agriculture, <strong>Ion Perju<\/strong>, <a href=\"https:\/\/www.facebook.com\/ion.perju.3\">assured<\/a> that bread price increases should not worry the citizens, as they would be unjustifiably performed by some economic agents and commercial networks, as well as fuelled by politicians whose declarations are <em>&#8220;based on political and electoral, not economic or financial reasoning.&#8221;<\/em> The official said that, on the contrary, wheat and flour prices set a declining trend on the market, especially when the biggest bread producers of the country did not increase prices (yet), and the country&#8217;s food security is fully ensured by a sufficient supply of wheat.<\/p>\n<p>In March 2021, a big <a href=\"https:\/\/anticoruptie.md\/ro\/stiri\/acuzatii-la-adresa-trans-oil-detalii-inedite-despre-tentativa-de-export-de-grau-prin-portul-giurgiulesti\">scandal<\/a> burst in Moldova, after several activists and politicians revealed that a total of <span style=\"color: #993300;\">17 000 tons of wheat (of which 14 000 from the state supplies) were about to be loaded on ships at the Giurgiulesti port in order to be exported<\/span>. A Government meeting took place afterwards, where a wheat export ban was <a href=\"https:\/\/gov.md\/ro\/content\/exportul-de-grau-din-rezerva-de-stat-se-interzice-pana-data-de-12-aprilie\">approved<\/a> available until April 12.<\/p>\n<p>SSC requested, on April 13, the extension of the restriction on wheat exports, including on wheat from the state supplies. The institution concluded a poor grain supply for farmers from Moldova following the 2020 drought, arguing that the ban would be necessary in order to avoid the increase in prices for bakery products, especially those sold to citizens with low incomes. Still, the restrictions were not extended.<\/p>\n<p>Moreover, the Interim Government representatives have <a href=\"https:\/\/gov.md\/ro\/content\/guvernul-inerimar-decis-eliberarea-21-mii-tone-de-grau-din-rezervele-de-stat-ce-vor-fi\">authorised<\/a>, on April 14, the release of <strong>20 787 tons<\/strong> of wheat from state supplies for refreshment.\u00a0 <em>&#8220;Refreshing bread wheat is absolutely necessary. Based on the expiration of the storage period, which leads to a change in its quality, essential financial losses may be generated for the state budget,&#8221;<\/em> the decision stated. According to the Government representatives, if the wheat is not successfully refreshed by May 10, <em>&#8220;there is a risk that the state budget will lose 900 lei per ton of wheat, after it will move to another quality category.&#8221;<\/em><\/p>\n<p>The wheat was transported to bread producers, bakery, milling and farms. The refreshment of state supplies is expected to be made from the next yield by July 1. Minister of Agriculture claimed that an estimated amount of<strong> 70 thousand tons<\/strong> of wheat remained in the country, whereas the Material Reserves Agency stored another <strong>31 thousand tons<\/strong>.<\/p>\n<h3>The 2020 drought<\/h3>\n<p>2020 had periods of over 7 months of drought and spring frosts, which severely affected the agricultural production, including wheat crop in the Republic of Moldova. According to the <a href=\"https:\/\/statistica.gov.md\/newsview.php?l=ro&amp;idc=168&amp;id=6897&amp;parent=0\">data<\/a> from the National Bureau of Statistics (NBS), <span style=\"color: #993300;\">the global agricultural production of 2020 decreased by 27% compared to the previous year <span style=\"color: #000000;\">&#8211;<\/span><\/span><span style=\"color: #000000;\">\u00a0a<\/span> record decrease for the last 30 years. Despite a difficult agricultural year, a yield of 570 thousand tons of wheat was harvested in 2020, out of which 120 thousand tons were exported, the Government <a href=\"https:\/\/gov.md\/ro\/content\/guvernul-inerimar-decis-eliberarea-21-mii-tone-de-grau-din-rezervele-de-stat-ce-vor-fi\">informed<\/a>. In the first 3 months of 2021, about <strong>89 000 tons<\/strong> of bread wheat were exported (including the Transnistrian region), that being about 30% less than in the same period last year.<\/p>\n<p>Even though Ministry of Agriculture assures there are no risks registered, without proper management of the situation it is only a matter of time before bread prices rise. Some grain producers have already increased their prices by up to 15%. This leads to flour becoming more expensive, as a chain reaction is triggered. That is while bread producers say that current prices can be maintained only until stocks of raw materials are depleted. As some of them have already risen bread prices, it might be that their supplies are over.<\/p>\n<p>The NBS <a href=\"https:\/\/statistica.gov.md\/category.php?l=ro&amp;idc=178\">data<\/a> showed that the average consumer prices increased by<strong> 2.83%<\/strong> in April 2021 compared to April 2020, including food &#8211; 5.08% and non-food goods &#8211; 3.80%. This year, in April, prices increased 2 times more than the average of the last 25 years for the same month, an economic analysis <a href=\"https:\/\/ionita.md\/2021\/05\/12\/in-luna-aprilie-preturile-la-produsele-alimentare-au-crescut-cu-32-sau-de-2-ori-mai-mult-decat-media-pentru-aceasta-luna\/\">presented<\/a>. Socially vulnerable and elderly people, <span style=\"color: #993300;\">for whom food expenses represent more than 50% of their spending,<\/span> are most affected by rising prices. Bread is the essential good that they can&#8217;t do without.<\/p>\n<p>Photo: Jude Infantini| Unsplash<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span>Bread prices have slightly increased in the Republic of Moldova and, as it seems, are about to go up even more in the next period. Producers of the essential product claim that the price of flour, packaging and fuel have increased &#8211; that being the main cause of any present or future price changes. Some [&hellip;]<\/p>\n","protected":false},"author":31,"featured_media":449420,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5,6,3,4,56],"tags":[669,1049,860,80,1050,35,27,988],"class_list":["post-449418","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-important-en","category-politics","category-society","category-reportaje","tag-agriculture","tag-bread","tag-export","tag-government","tag-grain","tag-important","tag-moldova","tag-prices"],"content_social_share":"<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Reading Time: <\/span> <span class=\"rt-time\"> 4<\/span> <span class=\"rt-label rt-postfix\">minutes<\/span><\/span><p>Bread prices have slightly increased in the Republic of Moldova and, as it seems, are about to go up even more in the next period. Producers of the essential product claim that the price of flour, packaging and fuel have increased &#8211; that being the main cause of any present or future price changes. Some experts said that, in fact, prices didn&#8217;t rise, they were rather adjusted, which should have happened a long time ago. <em>&#8220;Manufacturers who had stocks, kept the old prices, those who didn&#8217;t have such stocks had to rise the prices,&#8221; <\/em>Head of the Bakers&#8217; Association of Moldova <a href=\"https:\/\/tv8.md\/2021\/05\/14\/video-painea-produsa-la-un-combinat-de-panificatie-mai-scumpa-cu-circa-70-de-bani-explicatiile-producatorului\/\">said<\/a>.<\/p>\n<h3>Wheat exports<\/h3>\n<p>Vice-President of Parliament, <strong>Alexandru Slusari<\/strong>, <a href=\"https:\/\/fb.watch\/5B4qyZv2sn\/\">stated<\/a> repeatedly that the reason for the increase in bread prices would be the export of wheat, operated by some Moldovan businessmen, that leading to the impoverishment of the state supplies. The MP asked the president of the Republic of Moldova to convene the Supreme Security Council (SSC) on the subject of wheat export, <span style=\"color: #993300;\">which would have been made possible with the help of the Information and Security Service (ISS) and members of the Moldovan Government<\/span>. Alexandru Slusari made allegations of pressure applied by state institutions and customs service for issuing the documents necessary for export, even if they included false information.<\/p>\n<p>Afterwards, <strong>Mihai Popsoi<\/strong>, another opposition MP, <a href=\"https:\/\/www.facebook.com\/mihai.popsoi\">posted<\/a> a copy of a phytosanitary document issued for the export of 6600 kg of wheat through the Giurgiulesti port (located in the south of the country) and accused the socialists of performing illegal exports. <em>&#8220;The state supplies subordinated to Minister Voicu releases the wheat, National Agency for Food Safety, which is controlled by Igor Dodon issues authorizations, Minister [of Agriculture, Ion] Perju does not see the need to ban the export, although the Supreme Security Council insisted on this measure,&#8221;<\/em> explained the MP. He claimed that all these actions were meant to increase bread prices and blame the president for that. <em>&#8220;All these actions also provide profits of millions to oligarchs close to Dodon,&#8221;<\/em> Mihai Popsoi added.<\/p>\n<p><iframe style=\"border: none; overflow: hidden;\" src=\"https:\/\/www.facebook.com\/plugins\/post.php?href=https%3A%2F%2Fwww.facebook.com%2Fmihai.popsoi%2Fposts%2F10159036728815053&amp;show_text=false&amp;width=500\" width=\"500\" height=\"498\" frameborder=\"0\" scrolling=\"no\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p><em>&#8220;Three companies increased their prices of bread at the same time. Is it a cartel? I don&#8217;t know, state institutions have to tell us. Is it political? I think so. Someone is trying to blame the socialists for trying to export wheat. [&#8230;] The Moldovan Government is provisional, Parliament is dissolved, the only institution that works is the President&#8217;s Office,&#8221;<\/em> socialists <a href=\"https:\/\/www.privesc.eu\/arhiva\/94858\/Briefing-de-presa-sustinut-de-fractiunea-PSRM\">replied<\/a>.<\/p>\n<p>Minister of Agriculture, <strong>Ion Perju<\/strong>, <a href=\"https:\/\/www.facebook.com\/ion.perju.3\">assured<\/a> that bread price increases should not worry the citizens, as they would be unjustifiably performed by some economic agents and commercial networks, as well as fuelled by politicians whose declarations are <em>&#8220;based on political and electoral, not economic or financial reasoning.&#8221;<\/em> The official said that, on the contrary, wheat and flour prices set a declining trend on the market, especially when the biggest bread producers of the country did not increase prices (yet), and the country&#8217;s food security is fully ensured by a sufficient supply of wheat.<\/p>\n<p>In March 2021, a big <a href=\"https:\/\/anticoruptie.md\/ro\/stiri\/acuzatii-la-adresa-trans-oil-detalii-inedite-despre-tentativa-de-export-de-grau-prin-portul-giurgiulesti\">scandal<\/a> burst in Moldova, after several activists and politicians revealed that a total of <span style=\"color: #993300;\">17 000 tons of wheat (of which 14 000 from the state supplies) were about to be loaded on ships at the Giurgiulesti port in order to be exported<\/span>. A Government meeting took place afterwards, where a wheat export ban was <a href=\"https:\/\/gov.md\/ro\/content\/exportul-de-grau-din-rezerva-de-stat-se-interzice-pana-data-de-12-aprilie\">approved<\/a> available until April 12.<\/p>\n<p>SSC requested, on April 13, the extension of the restriction on wheat exports, including on wheat from the state supplies. The institution concluded a poor grain supply for farmers from Moldova following the 2020 drought, arguing that the ban would be necessary in order to avoid the increase in prices for bakery products, especially those sold to citizens with low incomes. Still, the restrictions were not extended.<\/p>\n<p>Moreover, the Interim Government representatives have <a href=\"https:\/\/gov.md\/ro\/content\/guvernul-inerimar-decis-eliberarea-21-mii-tone-de-grau-din-rezervele-de-stat-ce-vor-fi\">authorised<\/a>, on April 14, the release of <strong>20 787 tons<\/strong> of wheat from state supplies for refreshment.\u00a0 <em>&#8220;Refreshing bread wheat is absolutely necessary. Based on the expiration of the storage period, which leads to a change in its quality, essential financial losses may be generated for the state budget,&#8221;<\/em> the decision stated. According to the Government representatives, if the wheat is not successfully refreshed by May 10, <em>&#8220;there is a risk that the state budget will lose 900 lei per ton of wheat, after it will move to another quality category.&#8221;<\/em><\/p>\n<p>The wheat was transported to bread producers, bakery, milling and farms. The refreshment of state supplies is expected to be made from the next yield by July 1. Minister of Agriculture claimed that an estimated amount of<strong> 70 thousand tons<\/strong> of wheat remained in the country, whereas the Material Reserves Agency stored another <strong>31 thousand tons<\/strong>.<\/p>\n<h3>The 2020 drought<\/h3>\n<p>2020 had periods of over 7 months of drought and spring frosts, which severely affected the agricultural production, including wheat crop in the Republic of Moldova. According to the <a href=\"https:\/\/statistica.gov.md\/newsview.php?l=ro&amp;idc=168&amp;id=6897&amp;parent=0\">data<\/a> from the National Bureau of Statistics (NBS), <span style=\"color: #993300;\">the global agricultural production of 2020 decreased by 27% compared to the previous year <span style=\"color: #000000;\">&#8211;<\/span><\/span><span style=\"color: #000000;\">\u00a0a<\/span> record decrease for the last 30 years. Despite a difficult agricultural year, a yield of 570 thousand tons of wheat was harvested in 2020, out of which 120 thousand tons were exported, the Government <a href=\"https:\/\/gov.md\/ro\/content\/guvernul-inerimar-decis-eliberarea-21-mii-tone-de-grau-din-rezervele-de-stat-ce-vor-fi\">informed<\/a>. In the first 3 months of 2021, about <strong>89 000 tons<\/strong> of bread wheat were exported (including the Transnistrian region), that being about 30% less than in the same period last year.<\/p>\n<p>Even though Ministry of Agriculture assures there are no risks registered, without proper management of the situation it is only a matter of time before bread prices rise. Some grain producers have already increased their prices by up to 15%. This leads to flour becoming more expensive, as a chain reaction is triggered. That is while bread producers say that current prices can be maintained only until stocks of raw materials are depleted. As some of them have already risen bread prices, it might be that their supplies are over.<\/p>\n<p>The NBS <a href=\"https:\/\/statistica.gov.md\/category.php?l=ro&amp;idc=178\">data<\/a> showed that the average consumer prices increased by<strong> 2.83%<\/strong> in April 2021 compared to April 2020, including food &#8211; 5.08% and non-food goods &#8211; 3.80%. This year, in April, prices increased 2 times more than the average of the last 25 years for the same month, an economic analysis <a href=\"https:\/\/ionita.md\/2021\/05\/12\/in-luna-aprilie-preturile-la-produsele-alimentare-au-crescut-cu-32-sau-de-2-ori-mai-mult-decat-media-pentru-aceasta-luna\/\">presented<\/a>. Socially vulnerable and elderly people, <span style=\"color: #993300;\">for whom food expenses represent more than 50% of their spending,<\/span> are most affected by rising prices. Bread is the essential good that they can&#8217;t do without.<\/p>\n<p>Photo: Jude Infantini| Unsplash<\/p>\n<div class='heateorSssClear'><\/div><div  class='heateor_sss_sharing_container heateor_sss_horizontal_sharing' data-heateor-sss-href='https:\/\/www.moldova.org\/en\/are-there-reasons-and-concerns-about-rising-bread-prices\/' data-heateor-sss-no-counts=\"1\"><div class='heateor_sss_sharing_title' style=\"font-weight:bold\" ><\/div><div class=\"heateor_sss_sharing_ul\"><a aria-label=\"Facebook\" class=\"heateor_sss_facebook\" href=\"https:\/\/www.facebook.com\/sharer\/sharer.php?u=https%3A%2F%2Fwww.moldova.org%2Fen%2Fare-there-reasons-and-concerns-about-rising-bread-prices%2F\" title=\"Facebook\" rel=\"nofollow noopener\" target=\"_blank\" style=\"font-size:32px!important;box-shadow:none;display:inline-block;vertical-align:middle\"><span class=\"heateor_sss_svg\" 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