Business makes price revisions – economist on decline of prices of sugar, banana and other products
YEREVAN, MAY 21, ARMENPRESS. The current situation in Armenia led to the fact that in some markets the business revises its pricing policy, economist Atom Margaryan – head of the Innovation and Institutional Research Center at the Armenian State University of Economics, told ARMENPRESS, commenting on the recent decline of prices of some products, in particularly in sugar, banana markets.
“The government has not submitted a program yet, has not applied a political lever, but the business automatically goes to such pricing revisions. The business understands quite well that the shadow component in prices will sooner or later be studied and maybe later they will be accounted for. Therefore, smart businessmen go to that step. I would recommend the remaining businessmen, if they face similar problems, to quickly go to that step. Price-quality ratio must be not only just a lever ensuring profit, but be a fair bar enabling to operate with long-term competitive conditions in the market”, Atom Margaryan said.
The economist believes that in the near future the prices of fuels, fertilizers, medicines, building materials, timber will be revised. According to him, the markets of large importers will also be examined, and the new leadership must take steps.
“What the business needs to do? It must distribute the accumulated capital in other sectors, it should go to diversification, be flexible and resisting in the market for long-term presence. It’s clear that if there are several import businesses with a superprofit and it declines, there will be a quick bankruptcy. Therefore, the way out is diversification”, the economist noted.
Last week the price of sugar declined from 390 ADM to 340 AMD for 1 kg. The price of banana declined from 900 AMD to 550-600 AMD.
English –translator/editor: Aneta Harutyunyan