Wheat prices on the world market have been at a high of 70 percent and the Guyana Government has been keeping a concerned eye on the rising trend according to President Bharrat Jagdeo.
Analysts have attributed the hike to the austerity measures taken in Russia as a result of wildfires that have threatened crops and forced the government to put an embargo on grain exports until December.
Russia has traditionally been a huge producer and exporter of wheat and the analysts fear that with a drop in volume of imports there is likely to be a concomitant rise in wheat flour prices.
The Guyanese Head of State is hoping that the impact is not felt in Guyana, since the local milling company maintains a fixed price for extended periods with its parent company through contractual arrangements.
“I am hoping that they have procured a locked-in price for extended periods so hopefully when prices drop, because there is anticipation that the prices will drop again, that it will even-out the situation,” President Jagdeo said.
The National Milling Company of Guyana, (NAMILCO) is a subsidiary of Seaboard Corporation of the United States of America (USA). The company has been operating out of its Agricola location since 1967.
NAMILCO began its operations importing wheat from the USA and milling it in Guyana. Wheat was provided under the PL 480 Title 1 and Title 3 programmes whereby the US Government provided the wheat to the Government of Guyana.
In 1999, the US Government began donating wheat under different programmes whereby wheat is donated to the Guyana Government and NAMILCO purchases this wheat at market price.
Recently Guyana began exporting flour to neighbouring Brazil targeting a market of 100,000 bags annually and invited the services of Canadian wheat experts to assist bakers in improving their processes. NAMILCO is currently building a bond in Lethem to store flour