Is panicking appropriate? The scale of the impact of wheat sales on prices is announced

In Uzbekistan, the sale of wheat on the stock exchange will not lead to an increase in prices, but, conversely, may lead to a slight decrease.  This was announced today 30 May, by the head of the Department under the Ministry of Finance Tulkin Mirzayev at a press conference devoted to food security.

"There is no need to panic about the transfer of wheat to the stock exchange.  First, we have enough wheat and flour reserves.  In 2019, when we permitted putting flour on the stock exchange, there were various fears including: «Prices will rise sharply».  Experience has shown that prices have not risen.  In the period from October 2019 to mid-April 2020, the price of flour increased by only 10 percent.  It shows that all conditions were taken into consideration.

Now, the calculations have been made.  Today the price of flour and bread on the domestic market is known to everyone, it is no secret.  The price of the loaf, which we call cheap, only remained in Tashkent.  In other regions of the country, loaves are sold at free prices.  There is no flour in the markets for 2800 som.  According to State Statistics Committee, the average price of flour is more than 5000 som.  The population knows this.  Liberalization means acceptance of market prices.”

A representative from the Finance Ministry states that prices are not expected to rise after the wheat is traded on the stock exchange.  On the contrary, based on the experience of selling flour on the stock exchange, prices are expected to stabilize in a sense, and prices will fall in the future.