ANTI-TRUST BODY WARNS RETAILERS AGAINST PRICE HIKE

YEREVAN, DECEMBER 19, ARMENPRESS:An anti-trust government commission has given five days to retailers selling some kinds of foodstuff and building materials to review their prices. Ashot Shahnazarian, chairman of the commission for protection of economic competition, urged retailers to refrain from ungrounded price hikes. He implicated that several companies dealing with production, import and sale of butter, eggs and sugar, which hold monopoly in these sectors, may have cut secret deals to raise prices, which is not substantiated economically, in a bid to make extra profits by capitalizing on shopping boom of people ahead of New Year celebrations. He cited from the figures released by the Central Bank saying that Armenia’s national currency-dram-has gained 40 percent over the U.S. Dollar, resulting strangely in no change of prices of foodstuff in local markets, in some cases these prices even went up. As an example he said the prime cost of one egg production has reduced from 39 drams to 32 drams, while its retail price has upped to 75 drams. “After all why Armenians should pay 75 drams per one egg, when its primary cost is 32 drams and besides Armenia is an egg exporting country?” he asked. Some manufactures blame the retailers. For example, Mika Cement says it sells one ton of cement to retailers at 28,000 Drams while the retailer resells it at 40,000 drams. Shahnazarian said his commission will monitor prices in retail markets until January 20 to punish those which will raise prices without grounds.