140 AMD/1kg is the upper threshold set by company for purchase of maximum amount of 29 thsd tons, Yerevan Brandy Company clarifies

ArmInfo. Sharing farmers' emotions and understanding their desire to sell their products profitably, the Yerevan Brandy Company (YBC) this year increased the price of purchased grapes by 10 drams, which made 140 drams per 1 kg.  As ArmInfo was informed on September 4 by the press service of the Ararat Company, the similar price is the upper price limit, which the company is able to pay taking into account the purchase of a maximum volume of 29,000 tons. A price increase by about 8 percent, covers the officially registered inflation in the country 2-fold.  Returning to the issue of increasing prices for pesticides, the source notes that the YBC continues to provide them at prices of previous years, taking the financial burden of their rise in price. To recall, the program of interest-free credit granting of pesticides this year amounted to over 260 million drams.

"As for the statements that the company occupies dominant positions or dictates prices for grapes, we should note that such manipulative formulations do not correspond to reality. The company, each year organizing the procurement process as transparently as possible, is solely responsible for the price offered and volumes. Moreover, at the moment, according to our forecasts the price for the next year will be calculated according to the formula "140 drams + officially registered inflation in the country", the message of YBC reads.

Taking into account the current situation, the Yerevan Brandy Factory is ready to purchase grapes from all the contractors with whom the company has agreed on the terms. Nevertheless, if one of the wine growers has an intention not to provide grapes or give it to another company, the YBC guarantees that, irrespective of the relevant clauses of the contract, it will not apply any fines.

The message emphasizes that the YBC declares the price solely for its enterprise and is not responsible for price speculation of other manufacturers, who purchase less volumes.

To recall, the winemakers of the Armavir region on September 4 this year blocked the Armavir-Yerevan route and demanded a revision of the purchase price of the grape from the Armavir branch of the ''Ararat'' Yerevan Brandy Factory. They claimed that the 120-130 drams offered by the purchaser do not cover the prime cost and the costs that they spent on cultivation. Prior to this for 3-4 days grapes were purchased from factories at 160 AMD per 1 kg in accordance with the quality of the grapes. But on September 4, the Yerevan Brandy Company announced a purchase price of AMD 140, which is 10 drams higher than last year. And as soon as Ararat YBC announced this price, the purchase price was reduced by the Proshyan plant and other companies buying grapes. The villagers demanded the return of the previous purchase price.