There has been no official announcement, but indications are that farmers will get MNT350,000 per ton for their wheat this year. That would mean the price of flour would reach MNT650 per kilo or 30-40 percent more than the MNT480 set by the government. A recent meeting of wheat farmers, flour manufacturers and ministry representatives to decide on prices was marked by differing perceptions and conflicting data. Flour manufacturers said they needed better quality wheat while the growers worried about their problems of transportation.
Apart from the MNT350,000 per ton that seems likely to be the decision, farmers will get some more money as incentive from the Government. Last year this was MNT60,000 per ton, and farmers are hoping for more this year. They also want the incentive to cover wheat grown for animal feed, and not just for what is consumed by humans and used to make flour. The Ministry representatives did not make any commitment. Incidentally, the Government last year bought wheat for MNT330,000 per ton, including the incentive, but is now selling it to some companies for MNT220,000.
Source: Ardiin Erkh
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