DUSHANBE, January 17, Asia-Plus -- The effects of a sudden hike in world prices of grain will be felt in Tajikistan and lead to increase in the price of basic food products in the country, Akram Ruziyev, top manager of Tajik state-controlled  grain company Ghalla, said in an interview with Asia-Plus.

According to him, Tajikistan annually imports some 300,000 tons of wheat and 400,00 tons of wheat flour.  Ruziyev noted that purchase of large bulks of wheat and flour could curb a sudden hike in flour prices in the republic.  

“Entrepreneurs have started actively purchasing flour and wheat already this month that may possibly impact the domestic market and help stabilize, to a certain extent, the price situation,” the Ghalla head said, adding that since September 2006, prices of wheat flour in Tajikistan have risen by 15%-20% and amounted, as of January 1, to 48-62 somonis, depending on the flour type.  

According to the Ministry of Economic Development and Trade (MoEDT), Tajikistan last year imported 376,000 tons of wheat flour for a total amount of $49 million, which 29,800 tons more than in 2005.  Kazakhstan, accounting for more than 90 percent of Tajikistan’s flour imports, remains the main supplier of flour to the country.   “In 2006, Tajikistan imported 370,530 tons of wheat flour from Kazakhstan,” said a source at a MoEDT, “Besides, Tajikistan imported 2,800 tons of flour from Uzbekistan, 2,600 tons from Russia and 69.1 tons from Kyrgyzstan.” 

According to the Ministry of Agriculture and Environmental Protection (MoAEP), Tajikistan’s annual requirements in cereals are 1.5 million tons, including some 750,000 tons of wheat.   A source at a MoAEP said that last year, Tajikistan produced 912,200 tons of cereals, which is 22,000 tons fewer than in 2005.  The cereals target for 2006 has been determined at 1.12 million tons, according to the source.  

According to local experts, rising fuel prices and exchange rate of USD will also lead to increase in the price of wheat and flour in the country.  Since January 2006, an official exchange rate of USD in Tajikistan has increased by 7 percent and amounted, as of January 17, 2007, to 3.43 somonis for $1.00.