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

  • March, 2020 | The Khachapuri Index Increases by 26.6%

    The data behind the Khachapuri Index is ordinarily collected in open bazaars. However, given the coronavirus situation and the related recommendations, our researchers can no longer visit bazaars to collect data. To overcome this challenge, around the end of March 2020 we constructed a short online survey and asked our readers to fill out a questionnaire on the prices of khachapuri ingredients observed in bazaars from various Georgian cities. The data obtained show that the Read More
  • February, 2020 | Khachapuri Index Increases by 22.9%

    The Khachapuri Index reached a new historical high in February 2020. The Index continued its upward trend, reaching an average cost of 4.35 lari in February 2020. This is 1.3% higher than in January 2020 (m/m) and 22.9% higher when compared to February 2019 (y/y). The main contributors to the Khachapuri Index’s inflation since last year were cheese (36.5%) and flour (10.7%). Furthermore, as shown in the chart, the year-on-year price of all khachapuri ingredients—milk Read More
  • January, 2020 | The Khachapuri Index for Foreign Earners

    In January 2020, the cost of cooking one standard Imeretian khachapuri continued to increase, ranging from 4.21 GEL (Kutaisi) to 4.38 GEL (Batumi), with the average cost being 4.30 GEL. The new average price is 18.3% higher than the price in January 2019. While in month-on-month development, the khachapuri price is 0.7% higher than December 2019. The yearly price increase is driven largely by the deprecation of the Georgian lari against the US dollar. The Read More
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    Just like every Georgian family, ISET Policy Institute is preparing for the New Year, and we keep to our traditions and have cooked up a New Year Supra Index for our readers. The Index shows the cost of a standard festive supra meal for a family of five to six people in every Georgian region. The traditional dishes included in our calculations are: mtsvadi, satsivi (chicken in walnut sauce), khachapuri, trout, tabaka (fried) chicken, olivie Read More
  • November, 2019 | Annual Inflation in the Khachapuri Index Reaches 12.6%

    The Khachapuri Index continued its upward trend in November 2019, with the average cost of cooking one standard Imeretian Khachapuri reaching 4.1 GEL. This is 6.1% higher month-on-month (compared to October 2019), and 12.6% higher year-on-year (compared to November 2018). The increasing price trend was not surprising as, in general, an increase at this time of the year is driven by a seasonal decline in the supply of fresh milk and excess demand before the Read More
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