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News -
Economy
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Wednesday, 07 May 2008 06:31 |
 In attempts to head off a crisis,
the Mongolian government has announced strict price controls on wheat
currently stored in the country, as well as soon to be imported wheat.
The government also said it
will continue subsidizing wheat to maintain current prices. This is
expected to prevent large price increases in flour costs, which are
passed along to consumers as higher priced bread.
Mongolia’s actions follow
large increases in grain prices worldwide. In many countries the cost
of bread has greatly increased, resulting in fears of hunger and social
unrest.
Among the wheat that will have
controlled prices includes some 100 tons of flour purchased from Russia.
Mongolians consume 204,000
tons of wheat each year. The Russian wheat will be enough to maintain
domestic supplies for five months, according to government sources.
Mongolian officials note that
while they will not further reduce wheat costs, they will act to stabilize
wheat at current prices.
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Last Updated on Wednesday, 07 May 2008 06:49 |
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