May 24, 2011

Wheat prices in Kyrgyzstan up 67%

Wheat prices in Kyrgyzstan have gone up by 67.1% sine June 2010, due to the inflation of world food prices and in developing countries, the Asian Development Bank (ADB) said in a report.

The report states that since last June, reduction of production, caused by bad weather conditions, as well as a weak US dollar, high oil prices, and food export ban introduced by some leading food-producing countries, led to the global price rising pressures and caused double-digit growth in prices for wheat, corn, sugar, edible oil, dairy products, and meat.

Experts claimed that soaring world food prices in turn increased food costs for consumers in Asian developing countries, just like in 2007-08.

However ADB noted that global prices are one factor responsible for change in local food prices.

The bank said that for food-importing countries including Kyrgyzstan, internal food prices also depend on exchange rate, trade policy, subsidies level, and other political measures.

Director of the Permanent ADB Mission in the Kyrgyzstan Republic, Rie Hiraoka, said that the country should try to stabilise food production, enhance investment in agriculture to increase crop production and storage facilities to avert this looming crisis.

He also suggested strengthening the social protection system and reducing speculative activity in food markets.