Pasta in Russia can rise in price by half

Russian pasta producers are very worried that the durum wheat from which they are produced has risen in price by 80% from July to September.

With all the desire to maintain reasonable prices for the consumer, it is very difficult for pasta factories to do this. After all, pasta consists, in fact, of only two components: wheat (certainly durum varieties) and water.

Therefore, if the problem is not solved in the very near future, then with the rapid growth of the cost price, the manufacturers simply will not be able to maintain the same availability of pasta on store shelves.

What is the reason for the increase in wheat prices?

 

There are several such reasons at once:

Low yield in the Orenburg and Chelyabinsk regions (it is there that durum wheat is mainly grown).

A drop in the production of such wheat in Kazakhstan (in previous years, it covered up to 30-40% of the needs of Russian producers of pasta).

Rising prices in the world market. Durum wheat has doubled in price precisely due to a decrease in world production by a third.

Finally, under the current conditions export becomes very attractive for producers, as a result, even wheat that could be sent to a Russian pasta factory runs the risk of ending up abroad.

That is why manufacturers have already turned to the government, having sent a letter to the Prime Minister of the Russian Federation Mikhail Mishustin with a request to take urgent measures.

Will the duty help keep pasta prices down?

 

Since June of this year, Russia has introduced an export duty on wheat with a floating rate: 70% of the difference between the base price ($ 200 per ton) and the current market price. From September 22nd, the duty will be $ 50.9 per ton.

But, according to pasta producers, this is not enough!

To stop durum wheat from «flowing» abroad, it is proposed to set the duty at the level of at least $ 190-210 per ton . That is, 4 times higher!

The second no less important point is to regulate trade in the EAEU countries.

Simply put, to make sure that the Russian wheat that is sent to Kazakhstan does not go further for export to countries that are not part of the EAEU.

In the opinion of pasta producers, the lack of a fight against this situation creates a real «black hole» into which wheat leaves Russia not only in large volumes, but also without paying a duty.

Currently, a number of organizations have signed an appeal to Mikhail Mishustin:

All-Russian movement of entrepreneurs.

Altai Union of Entrepreneurs.

Barilla Rus.

Sea Group.

Makfa.

Pospelikhinskaya macaroni factory.

Extra M.

Samara mills.

In the current situation, urgent and effective measures on the part of the government are practically the only thing that can prevent a significant rise in the price of pasta in the very near future.