Friday, December 5, 2025

Energy and food costs drive up industrial prices in Georgia

(Interpressnews.)

TBILISI, October 30 – Producer prices in Georgia rose again in September, led by higher costs in food manufacturing and energy, according to new data from the National Statistics Office (GeoStat).

The latest figures come as figures from the country’s wheat harvest show yields slightly improved from last year but quality and weather disruptions pushing up grain prices.

GeoStat’s report shows that industrial producer prices increased by 1.1% month-on-month and 4.4% year-on-year. The sharpest rise came in mining and quarrying, up nearly 18% compared to last year, while electricity, gas, and water supply and food processing also posted notable increases. The report suggests that production costs are rising across multiple industrial sectors, potentially putting pressure on downstream consumer prices.

The food industry’s price uptick coincides with a more expensive grain market. Levan Silagava, executive director of the Georgian Wheat and Flour Producers Association, told Interpressnews that the 2025 wheat harvest ended around 200,000 tons, slightly higher than last year’s yield.

But this modest increase comes with caveats. Heavy rainfall during harvest season slowed collection and damaged part of the crop. “Weather conditions have affected both the pace and the quality of the harvest,” Silagava said as the harvesting was in full swing last summer, noting that “some of the wheat that was meant for food production will now be classified as non-food grade.”

Farmers and mills are also facing higher input costs. The starting price for food-grade wheat is now 70 tetri per kilogram, compared to around 60 tetri last year, an increase of roughly 15%. Mill delivery prices range between 65 and 70 tetri, according to Silagava.

Georgia imports much of its grain, as domestic wheat output remains modest compared to consumption, due to structural vulnerabilities, such as heavy reliance on imported energy and raw materials, coupled with volatile agricultural conditions.

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