Several Russian bread producers have told retail chains they plan to raise prices by seven to 12 per cent from August due to higher production costs and the limited effect of state support, the Kommersant daily reported July 19.
Russia, one of the world’s largest wheat exporters, has introduced a series of grain export curbs and retail price caps on sunflower oil and sugar since late 2020 that it hopes will help reduce high domestic food inflation.
While retail prices for sunflower oil and sugar were stable, they have risen for bread producers, some of them told Kommersant. Prices for margarine, packaging and transportation costs were also up, they added.
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Russia’s agriculture ministry sees no reason for a significant increase in bread prices because domestic prices for wheat are down 7.2 per cent so far this year, it said.
Russian prices for bread made from wheat flour are up 4.6 per cent since the start of 2021, it added.
The agriculture ministry said bread producers were getting state subsidies in exchange for not raising their prices — two roubles (US$0.027) per 1 kg.
However, bread producers told Kommersant the subsidies met only part of their rising costs, and that some of them had decided not to seek them.
