Indexes
March 31, 2017 FPI | Are Major Food Commodities Becoming More Expensive?
03
April
2017
By the end of March, food prices increased by 4.4% y/y (that is, compared to March 2016) and by 1.6% m/m (that is, compared to February 2017). On a biweekly basis, the biggest price increases happened for coriander (40.3%), cucumber (30.0%), and eggplant (14.9%). Carrots, onions, and tomatoes, on the contrary, became cheaper and cost 22.1%, 24.4%, and 15.0% less, respectively.
LOOKING AT A PARTICULAR BUNDLE OF PRODUCTS…
According to the Retail FPI, prices of major commodities increased in March of this year compared to the same period the previous year. Sugar prices increased the most, rising by almost 30%, whereas rice, buckwheat, and wheat flour prices increased by 23.8%, 16.3%, and 7.1%, respectively.
While m/m changes are usually driven by seasonality or holidays, such as Easter, which is coming up, y/y changes are mostly driven by the variations in production and international prices.
Commodities in the diagram are basic foods that are actively traded on international food markets, and due to their importance for food security in developing countries, the FAO closely follows their prices. FAO’s latest data on their Sugar Price Index shows a huge 55% increase in sugar prices y/y (Feb 2017 compared to Feb 2016). The most recent prices for cereal are also higher, as shown by the Cereals Price Index.
Given that Georgia is a net importer of these commodities, one might expect further price hikes if international trends are continued into the future unless Georgian supermarkets offer some discounts to consumers due to the Easter holidays.
Recent Publications
View All
June 2024 | Agri Review
28
June
2024
In June 2024, the National Statistics Office of Georgia issued its annual publication on the agricultural sector – Agriculture of Georgia 2023. The publication estimates that agriculture, forestry, and fishing comprised 6.9% of the GDP in 2023, which is slightly lower than in previous years, but in line with general trends over the last few years (agricultural GDP being 7-8% of GDP on average).
March 2024 | Agri Review
01
April
2024
In June 2023, responding to appeals from the Georgian Flour Producers Association, the Georgian government imposed a temporary import duty on wheat flour imported from Russia. This advocacy by the Association began after Russia implemented a “floating tariff” on wheat in 2021, making wheat imports more expensive compared to wheat flour.
December 2023 | Agri Review
29
December
2023
Citrus production in Georgia is currently experiencing a declining trend, despite the implementation of a tangerine state subsidy program. Under the program, farmers receive 30 instead of 15 tetri for 1 kg of non-standard (low-quality) tangerines.
September 2023 | Agri Review
29
September
2023
Rtveli 2023 commenced this August. Similar to previous years, the Government of Georgia (GoG) is subsidizing the grape harvest again to support farmers who have suffered from worsening climate conditions. Based on information from MEPA representatives, the subsidy's primary aim is to guarantee that even producers with lower-quality grapes can still sell their products.
June 2023 | Agri Review
30
June
2023
In June 2023, the National Statistics Office of Georgia issued its annual publication on the agricultural sector – Agriculture of Georgia 2022. The publication estimates that agriculture, forestry, and fishing comprised 7.5% of the GDP (constant prices) in 2022, which is lower than the 8% share in 2021, but in line with general trends over the last few years (agricultural GDP being 7-8% of GDP on average).
