November 17 2003, 11:29

Increase of bread prices shocked elderly people in Moldova

On November 15 the inhabitants of Chisinau found out that bread prices had increased, despite the statements of officials that production of the most important staple for the low-income citizens would be subsidised and the currently experienced by the country bread grain crisis would not touch the most socially insecure groups of consumers, Basa-Press agency has informed.

Moldova's largest bread baking company "Franzeluta" raised the prices for its products at 50 to 60 percent on average, while just two days before agriculture ministry's officials had been asserting that the bread prices would not increase, and even vice versa - a drop of bread prices was possible.

The rise of bread prices has caused discontent of the customers, once they discovered the unpleasant "surprise". The bad news caused a genuine shock to elderly people, who live from hand to mouth on their miserable pensions. They say they will be able to buy only bread now, no money would be left for anything else.

On Thursday Deputy Minister of Agriculture Anatoly Spivachenko stated that bread prices would not be increasing and, moreover, their 5 percent reduction was possible in further perspective. He said in order to cover wheat deficit, the size of which was about 400,000 tonnes, and to stabilise bread prices, the government had provided for wheat imports at prices below the market ones. In the same statement he stressed that the Republic of Moldova possessed a stock of flour to last for 15 to 20 days, which removed any causes for increase of bread prices in the nearest time.

Bread bakers, however, objected to the words of the ministry official on that very day, and stated that the increase of bread prices was indispensable. That noted that the bread prices in Chisinau - the country's capital - were about 30 percent lower than in other places in the country. Company "Franzeluta" was in preferable position in relation to other bread baking firms and was supplied with flour by state-run enterprises, receiving grain under intergovernmental agreements, while private companies had to by wheat and the flour at higher prices.

In response to Chisinau's request, Russia and Kazakhstan had expressed readiness to provide certain amounts of wheat to Moldova, in excess of the already contracted amounts, as a way of humanitarian assistance.

According to the news agency, annual demand of Moldovan market in wheat is about 1 million tonnes. Wheat deficit this year is assessed at about 400,000 tonnes of milling grain and 600,000 tonnes of feed one. This year's wheat crop in Moldova has been the lowest in 50 years - 163,000 tonnes.