Mongolian consumers fear flour price rising needlessly
Since Russia imposed a temporary ban on grain export early August, the price of flour increased in the countrywide [as published], leading to strong debate and anger among the population since the flour is a major ingredient in daily diet of Mongolians.
The consumers and experts believe that domestic flour manufacturers increased the price when there was no basis to do so even though Russia banned its grain export. They also blame flour dealers for such a sudden flour price growth.
Flour dealers claim that the flour manufacturers sell their flour at increased price. In turn, the flour manufacturers, except the Altan Taria company, which officially announced that it had raised its flour price, ruled out the statements by dealers saying that they had not increased their price.
In order to deal with the situation, officials from the Food and Agriculture Ministry held a meeting with all flour-manufacturing companies, except the Altan Taria that did not send its representative to the meeting. As result, flour manufacturers agreed not to increase their price without reasonable grounds and renewed their contracts with the Harvesting Support Fund (HSF).
Under contract with the HSF, the flour manufacturers receive grain from this fund at cheap price provided that the manufacturers are obliged not to increase their price above 480 tugrik per kilogram [approx 36 US cents]. According to the HSF deputy director, Ts. Borchuluun, the renewed contracts with the flour manufacturers are effective till the re-fixing of flour price this autumn.
A major outcome of the meeting with flour manufacturers was that manufacturers agreed in their contract to supply their flour at 480 tugrik starting from 11 August, Borchuluun underlined.
"The HSF has 103,000 tons of grain in reserve and the General Department of Emergency has another 21,000 tons in reserve, which is sufficient for three or four months. Annual grain demand of the country stands at 420,000 tons" he added.
In order to keep the flour price stable, the Food and Agriculture Ministry is to host a national flour fair next week. During the fair, consumers are able to buy the flour at production price.
Originally published by The UB Post website, Ulaanbaatar, in English 13 Aug 10.
The consumers and experts believe that domestic flour manufacturers increased the price when there was no basis to do so even though Russia banned its grain export. They also blame flour dealers for such a sudden flour price growth.
Flour dealers claim that the flour manufacturers sell their flour at increased price. In turn, the flour manufacturers, except the Altan Taria company, which officially announced that it had raised its flour price, ruled out the statements by dealers saying that they had not increased their price.
In order to deal with the situation, officials from the Food and Agriculture Ministry held a meeting with all flour-manufacturing companies, except the Altan Taria that did not send its representative to the meeting. As result, flour manufacturers agreed not to increase their price without reasonable grounds and renewed their contracts with the Harvesting Support Fund (HSF).
Under contract with the HSF, the flour manufacturers receive grain from this fund at cheap price provided that the manufacturers are obliged not to increase their price above 480 tugrik per kilogram [approx 36 US cents]. According to the HSF deputy director, Ts. Borchuluun, the renewed contracts with the flour manufacturers are effective till the re-fixing of flour price this autumn.
A major outcome of the meeting with flour manufacturers was that manufacturers agreed in their contract to supply their flour at 480 tugrik starting from 11 August, Borchuluun underlined.
"The HSF has 103,000 tons of grain in reserve and the General Department of Emergency has another 21,000 tons in reserve, which is sufficient for three or four months. Annual grain demand of the country stands at 420,000 tons" he added.
In order to keep the flour price stable, the Food and Agriculture Ministry is to host a national flour fair next week. During the fair, consumers are able to buy the flour at production price.
Originally published by The UB Post website, Ulaanbaatar, in English 13 Aug 10.
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