Excess of flour in the Russian market: demand does not meet the supply, believes the Ministry of Agriculture.

The oversupply of flour for bread production in the Russian market exceeds the demand. The situation in the bread and flour market is stable, according to the Ministry of Agriculture.

"Last year's grain harvest, even taking into account exports, provides a sufficient amount of raw materials for full-fledged bread production for the domestic market. According to the industry community's assessment, the supply of flour for bread baking significantly exceeds demand, and there is no information about a shortage of products from the business side," the department reported, cited by Interfax.

The Ministry of Agriculture assesses the situation in the bread and flour market as stable. "As of June 26, the average selling price of wheat flour was 24.9 rubles per kilogram. Since the beginning of the year, the cost of this product has increased by 2.9%, which is below the inflation rate. However, it is worth noting that bread and flour producers are facing rising costs for transportation, packaging, and related expenses," the department's statement said.

Currently, the prices of wheat of the 3rd grade are 13,733 rubles per ton, and for the 4th grade wheat - 12,655 rubles. These figures are clearly below the maximum allowable prices for wheat, which allow for market interventions, as indicated by the Ministry of Agriculture.

The Ministry expects that with the increase in flour production and other factors, prices in the market will continue to remain stable.