ISET

In August 2018, the average cost of cooking one standard Imeretian khachapuri increased to 3.43 GEL, which is 3.8 % higher month-on-month (m/m, that is, compared to July 2018), but 0.5% lower year-on-year (y/y, compared to August 2017).

According to Khachapuri Index data, the price of wheat flour in different bazaars in Georgia has started to go up. The price of wheat rose by 1.6% in August month-on-month (compared to July 2018).

This increase follows a similar increase in the international market for this commodity. According to the FAO Food Price Index, the price of wheat has gone up by 8% month-on-month. High global prices of wheat this year have been attributed to a low supply in the world market. This will eventually be reflected in domestic wheat prices in Georgia, where the self-sufficient ratio for wheat is 15% and the country heavily depends on wheat imports. Almost 100% of wheat imports come from Russia. It is expected that higher wheat prices in the world market will be transmitted to Georgia in the coming months, leading to further increases in the price of wheat and wheat products. According to ISET’s policy paper “Price Transmission on the Wheat Flour Market in Georgia,” it takes around 6 months for international wheat prices to be transmitted fully into the domestic market.

Furthermore, wheat prices may be affected by an upcoming new regulation. Namely, importing wheat via roads will be banned. According to this new regulation, wheat can be transported to Georgia only by sea or train. While some stakeholders argue that this will increase efficiency in wheat transportation and will thus lower wheat prices, others warn that there will be an increased burden on currently-operating small wheat traders, and expect a slight increase in the price of wheat and wheat products, Moreover, representatives of not only wheat, but other potentially affected sectors (e.g., chicken, eggs), are protesting this regulation. Several agricultural producers are against this regulation, warning that this will lead not only to wheat price increases, but will raise the prices for many other related products. The Finance Minister announced that the decision to ban the import of wheat via roads has been postponed till October 1, 2019.

 

More Khachapuri Index Articles

  • September, 2019 | Rtveli Made Khachapuri Expensive

    In September 2019, the average cost of cooking one standard Imeretian khachapuri reached 3.64 GEL, which is 3.0% higher month-on-month (compared to August 2019), and 2.3% higher year-on-year (compared to September 2018). The price of khachapuri increased in all four major cities of Georgia: Tbilisi, Batumi, Kutaisi, and Telavi. Two factors together pushed the Khachapuri Index upwards in September. On the one hand, the Index is up due to a seasonal decline in the supply Read More
  • July 1, 2019 | Summertime Vibes

    The average cost of cooking one standard portion of Imeretian Khachapuri stood at 3.24 GEL in May 2019. This is 6.4% lower MoM (compared to April 2019), and 2.4% higher YoY (compared to May 2018). The prices of all khachapuri ingredients, except yeast, are down in monthly terms, compared to April 2019. If we take a more detailed look at the prices of the ingredients (see graph), cheese (-11.5%) was the main contributor in May Read More
  • June 17, 2019 | Increased Wheat Production, Worldwide

    The cost of cooking one standard Imeretian khachapuri in May 2019 averaged 3.24 GEL, which is approximately 2.4% higher compared to May 2018 (year-on-year), and 6.4% lower compared to the previous month (April 2019). The highest increase was observed in flour prices, which have gone up by 7.4% compared to their levels last year (May 2018). The Khachapuri Index data can moreover reveal an increasing trend in flour prices, starting from last year. According to Read More
  • June 3, 2019 | Kutaisi – the Cheapest Place to Buy Khachapuri?!

    The average cost of cooking one standard Imeretian khachapuri declined to 3.24GEL in May 2019. The price dropped by 6.4% month-on-month (compared to April 2019); however year-on-year prices have increased by 2.4% (compared to May 2018). The Khachapuri Index lost value in all large cities in Georgia compared to the prior month (April 2019). The highest month-on-month decrease of 16.6% was observed in Kutaisi, where the price stood at 2.68 GEL, followed by Telavi (3.30 Read More
  • May 20, 2019 | How Much Can You Save?

    The average cost of cooking one standard Imeretian khachapuri in April 2019 varied across Georgian cities, from 3.21 GEL (the price in Kutaisi) to 3.57 GEL (in Telavi). The overall average price was 3.47 GEL, which is 1.3% lower compared to the previous month (March 2019), and 5.5% higher compared to the same month of last year (April 2018). The change in yearly terms was driven by increases in three of the core ingredients: cheese Read More
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