MOSCOW, July 19 (Reuters) – A number of Russian bread producers have instructed retail chains they plan to lift costs by 7-12% from August attributable to larger manufacturing prices and the restricted impact of state assist, the Kommersant day by day reported on Monday, citing trade sources.
Russia, one of many world’s largest wheat exporters, has launched a collection of grain export curbs and retail value caps on sunflower oil and sugar since late 2020 that it hopes will assist to cut back excessive home meals inflation.
Whereas retail costs for sunflower oil and sugar had been steady, they’ve risen for bread producers, a few of them instructed Kommersant. Costs for margarine, packaging and transportation prices had been additionally up, they added.
Russia’s agriculture ministry sees no purpose for a big enhance in bread costs as a result of home costs for wheat are down 7.2% up to now this 12 months, it mentioned in a separate touch upon Monday.
Russian costs for bread produced from wheat flour are up 4.6% for the reason that begin of 2021, it added.
The agriculture ministry mentioned bread producers had been getting state subsidies in alternate for not elevating their costs – 2 roubles ($0.027) per 1 kg.
Nevertheless, bread producers instructed Kommersant the subsidies met solely a part of their rising prices, and that a few of them had determined to not search them.
($1 = 73.9920 roubles)
(Reporting by Polina Devitt Enhancing by Mark Potter)
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