Page 54 - GEORptMar21

9.1.9 Agriculture sector news
Russia’s grain export quotas to hit food prices in Georgia
Russia’s decision to impose grain export quotas has hit food prices in Georgia at a time when local currency depreciation is already putting significant pressure on local producers.
Moscow plans to introduce quotas on grain exports from February 15 to June 30. The quotas will cover up to 18mn tonnes of grain. Customs tariffs are also increasing.
Russia is the main supplier of grain to Georgia. In just the first 10 months of 2020, more than $100mn worth of grain was exported to the country.
As a result of restrictions imposed by Georgia’s giant neighbour, Georgian importers expect wheat prices to rise by around $40 per tonne.
The price of one tonne of wheat delivered to Poti on Georgia’s Black Sea coast stood at $260-262 at the end of December. Since the entry into force of customs fees, which amount to €25 per tonne, but may increase, the price is expected to rise to $300, according to Poti Grain Terminal general director Ketevan Kublashvili.
Representatives of the poultry industry in Georgia are announcing price rises, given the planned Russian restrictions on grain exports. Head of the company Invet, David Shalamberidze, told Business Media that last year grain prices already became significantly more expensive. Shrubs (sunflower and soybeans) used by the poultry industry for food have increased in price by 50% to 60%.
9.1.10 Consumer durables and electronics sector news
Georgia furniture, household electronics sales 90% up ahead of lockdown
Sales of electrical appliances, home appliances, furniture and other durable items sharply increased in Georgia by around 90% y/y in the week of November 18-24, ahead of the country’s coronavirus (COVID-19) lockdown commencing November 28 lockdown, according to a report from TBC Capital.
"The growth rate of non-cash expenditures on furniture and other household goods has increased compared to the previous week, and the annual change in the period of November 18-24 was +92% y/y,” according to the report.
The increase in non-cash spending on electronics increased amounted to +88% y/y. Non-cash expenditures on construction materials increased by + 56% y/y.
According to TBC Capital, such sharp sales increase in the assessed goods had never been seen before.
The report indicated that the sales gains were even steeper across November 25-27.
Shopping centres were overcrowded and Tbilisi saw huge traffic jams that kept cars immobilised or at a crawl for many hours.
The new coronavirus restrictions have not gone down well with the shopping mall operators, who have said that banning their activities will put 17,000 people at risk of losing their jobs.
Georgia has been announcing more than 4,000 new coronavirus cases per day for the past several days. For a national population of under 4mm, the figure equates to more than one case per 1,000 residents per day.
54 GEORGIA Country Report March 2021 www.intellinews.com