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The decision by Moscow earlier this month to place a ban on the export of wheat until the end of this year for fear of shortages on its domestic market resulted in rising prices on the international grain market, which also affected prices in Armenia.

But Agriculture Minister Gerasim Alaverdyan says no further essential change in wheat prices is expected in Armenia and that, as of today, wheat supplies in the necessary amount have already been imported into the country.

Armenia relies on Russia for about 80 percent of its imported raw grains. Bread prices in Armenia have risen by 20 to 30 percent since late July.

After the Russian ban on wheat exports, Armenian importers have been looking to grain markets in Bulgaria, Kazakhstan, Ukraine and Iran for import opportunities.

Also, negotiations are on with the Russian government about a possible shipment of a certain amount of wheat later in autumn.

“The matter concerns contracts that have already been signed but not implemented after the embargo on the export of wheat was put in place,” says Alaverdyan.

Armenia annually consumes between 650,000 and 720,000 tons of food grains and relies on import for nearly two thirds of its grain consumption. This year the country expects to grow locally up to 280,000 tons of wheat, which will be by 90,000 tons less than last year. It is estimated that annually Armenia imports around 440,000 tons of wheat.

Today wheat is imported at a price of 80-140 drams (20-40 cents) per kilo depending on the quality, type and other parameters. The minister also links the rise in the price with higher transportation costs.

Recently, the government approved a national program of wheat seed growing and seed production for 2010-2014, which, if implemented, is expected to raise the level of locally grown wheat reserves to 50-55 percent of local consumption.