Prices for rice and buckwheat are rising for completely different reasons

21 august 2015 | The Life News

The prices per tonne of rice and buckwheat have gone up again. The Deputy Head of the Department for Expert Analytics of the Analytical Center Roman Titov believes that the prices for rice and buckwheat are rising for completely different reasons.

Roman Titov
Roman Titov
Department for Expert Analytics

 ‘The Supply in the rice market is falling because exports are falling while Russian rice producers are choosing to export more of their output to capitalize on the weak ruble. According to customs statistics between July 2014 and May 2015 Russia imported 14.2% less rice than in the same period in past years.  Exports in the same period were up 70%, reaching 264,800 tonnes. In the meantime the increase in rice crops by 114,000 tonnes to 1,049,000 tonnes in 2014 failed to compensate the shortage resulting from rerouting of foreign trade commodity flows, which is estimated at about 174,000 tonnes,’ the expert said.

As for buckwheat, its price is rising because of a 20% fall in its crops in 2014 compared to 2013, Mr. Titov believes.

In his opinion, talking about a possible rise in retail prices following an increase in wholesale prices would be a bit premature at this point. ’The changes in retail and wholesale prices we have seen this past quarter suggest as a rule that retail prices follow suit after a hike in wholesale prices within one month, so a lot is going to depend on this year’s crops and on how much buckwheat retailers have got in stock,’ the expert concluded.