ArmInfo. Working group under the Public Council of Armenia will find out the reasons for the recent rise in price on the country's food market. It will also look for ways to mitigate the effects of higher prices.
According to the press service of the department, a working discussion was held on October 12 with representatives of the Ministry of Agriculture, the Ministry of Finance, the Central Bank, the State Revenue Committee, the National Statistical Service, the State Commission for the Protection of Economic Competition, and public organizations.
The working group will identify the causes of price increases, both objective and subjective, and its impact on the economy of the country in terms of increasing the social burden of the population. Ways will be identified to ensure that the negative situation is directed towards the development of local production.
Monitoring of the State Commission for the Protection of Economic Competition revealed an increase in prices for meat, butter and gasoline. According to representatives of state agencies, the increase in the cost of butter is due to the rise in price of the product on the world market. They also noted that the process started since May last year, and it is expected that the price increase may continue. Taking into account the increased demand for the goods, the Public Council called for the production of the product in Armenia. As for meat prices, according to Deputy Minister of Agriculture of Armenia Ashot Harutyunyan, the main reason for the rise in price was the increase in the price of feed, which affected the total cost of keeping livestock. According to him, due to additional expenses, the villagers increased the price of meat and sold them to the intermediaries at a new price. In addition, the volume of exports of cattle increased, he said.
It is noteworthy that on the eve of the meeting with journalists, Armenian Minister of Agriculture Ignaty Arakelyan, speaking about the reasons for the rise in price of meat, said that after talks with the villagers, he realized that, despite the increase in prices for livestock feed, they did not raise the prices for beef and lamb. As explained by the minister, the villagers are not interested in raising prices, because they have a problem, both with the sale of goods, and with the operative resolution of their own financial tasks. And here, as the head of the Ministry of Agriculture confessed, he sees concrete contradictions. "In this context, the increase in meat prices in Yerevan is incomprehensible for me - I can not explain the phenomenon in any way," Arakelyan said.
As for the increase in the price of gasoline, this is also due to the increase in the cost of goods on the international market. Meanwhile, according to the Public Council, there was no increase in gasoline prices in the Russian market, from where petrol was mainly delivered to Armenia. Following the discussion, the members of the Public Council came to the conclusion that the Armenian government should not only monitor the situation, but also analyze trends in the market, and find flexible market mechanisms for influencing the pricing process. In addition, the Cabinet called for the development of a new policy and strategy for the development of agriculture. The executive branch was also recommended to take the necessary steps to maximize the negative impact of high prices on the population of the country.
In the last month in Armenia there is a rise in price of meat and butter. According to the National Statistical Service, the average price for 1 kg of beef in August in Yerevan was about 2100 drams, and lamb - about 2200 drams. Already in September, the price of one kilogram of beef reached 2,100 to 2,500 AMD, lamb - from 2,200 to 2,800 drams, pork from 2,600 to 3,500 AMD. The relevant authorities explain the increase in meat prices as an unfavorable year for agriculture, and for oil - by price fluctuations in the world market. Experts predict a further rise in price for essential goods.
In Armenia, there was also a rise in prices in the retail gasoline market - by 20 drams. Regular gasoline costs 400 now, Premium - 420 AMD, diesel fuel also went up by 10 drams and costs 370. From September 2016 to January 2017, Regular gasoline cost 330, and Premium 350 drams. Large companies - Flash, CIPs Oil, Max Petrol buy gasoline from Rosneft.