In Uzbekistan, in the near future, price of a loaf of bread will increase up to 1,500 soums. All this will happen due to liberalization of prices for grain and flour, Kun.uz source reported.

It should be recalled that in early October, the Council of farms, dekhkan farms and homeowners appealed to the government and parliament with a request to ensure the financial sustainability of grain products. For several years, the issue of affordable flour and bread, production and processing of grain was solved by the principles of strict state regulation, and farmers sold their production at prices lower than market prices.

As a result, the interest of farmers in increasing productivity and grain production decreased, using exclusively state soft loans, they were not interested in directing their own funds to receive additional income.

At the same time, most of the cheap flour, not reaching the appropriate strata of the population, was sold at a market price, bypassing the primary goals – targeted support and social protection of the population. In turn, there have been cases of abuse of products by grain processing companies and trade organizations.

According to Kun.uz source, deputies studied the above facts. It became known that farmers really do not receive the appropriate income, and some of them suffer losses.

When the purchase prices for grain approach market prices, a number of grain enterprises cannot pay for farms. This is due to the fact that enterprises buy wheat at market prices and sell it at a fixed price set by the government – 1,400 soums per 1 kg of processed flour. Since grain processing companies suffer losses, they cannot timely make payments to farmers.

Currently, the cost of first grade wheat flour is 2200-2400 soums, but Uzdonmakhsulot is forced to sell it for 1400 soums because of the fixed price.

“This situation indicates that the mechanism of a market economy for production of flour processing enterprises has not been established and there is no systematic chain between the producer and the consumer,” the source said.

The government decided to stop wheat flour subsidy program. In turn, this will lead to a rise in price of a loaf of bread up to 1,500 soums. Currently, the wholesale price of a loaf of bread is 1,000 soums. In many stores, it is sold for 1,100 soums.

It should be recalled that the last time the price of a loaf of bread increased in September 2018. Before that, a loaf of bread was sold for 600-650 soums.