Prices on agri­cul­tural prod­ucts rise in Ar­me­nia

Azer News - - Front Page - By Sara Is­rafil­bay­ova

The de­ci­sion of the Gov­ern­ment of Ge­or­gia to ban the im­port or ex­port of wheat or wheat-rye flour on road trans­port since Septem­ber 15 will lead to an in­evitable rise in prices for bread and bak­ery prod­ucts in Ar­me­nia.

TChair­man of the Ar­me­nian Union of Agrar­i­ans and Peas­ants Grach Ber­beryan said that the ini­tia­tive of the Ge­or­gian side will af­fect the price of wheat im­ported to Ar­me­nia.

“Ac­cord­ing to our cal­cu­la­tions, trans­porta­tion costs will in­crease by $50-60, as a re­sult, bak­ery prod­ucts will rise in price in Ar­me­nia by 10-15 per­cent. But, as far as the price of bak­ery prod­ucts ac­tu­ally in­creases, it also de­pends not only on the con­sci­en­tious­ness of im­porters, but also on bread pro­duc­ers,” he said.

Ge­or­gia is the only tran­sit coun­try for Ar­me­nia in terms of grain im­ports. Ar­me­nia cur­rently buys wheat mainly from Rus­sia and re­al­izes sup­plies via tran­sit through Ge­or­gian ter­ri­tory.

Ar­me­nia has a grain fund and it can pro­vide the pop­u­la­tion for sev­eral weeks. And the mat­ter is what will fur­ther save Ar­me­nia from star­va­tion when the re­serves run out.

Ar­me­nia’s il­le­gal ter­ri­to­rial claims to its neigh­bors and the oc­cu­pa­tion of the ter­ri­to­ries of Azer­bai­jan are the very fac­tors why Ar­me­nia is in such a dif­fi­cult and des­per­ate sit­u­a­tion.

More­over, the other day, Prime Min­is­ter Nikol Pashinyan made a de­tour around GUM mar­ket to get ac­quainted with the prices on agri­cul­tural prod­ucts. He re­ceived alarm­ing sig­nals about the in­crease in prices for agri­cul­tural prod­ucts.

The sit­u­a­tion is para­dox­i­cal. It is un­clear how the price for toma­toes can range from 150 to 1,000 drams, for pears from 300 to 2,000 drams, when it comes to a small mar­ket, such as Ar­me­nia. Ar­gu­ments are stan­dard - drought, so­ci­ety has no pur­chas­ing power, a small crop and so on. It is clear that the gov­ern­ment does not have direct levers of in­flu­ence on pric­ing.

In ad­di­tion to de­vel­op­ing strate­gic is­sues and a vi­sion of the coun­try’s de­vel­op­ment, Pashinyan faces the need to quickly solve a num­ber of prob­lems. The sphere of agri­cul­tural pro­duc­tion is only one of them.

On the other hand, the global prob­lem is a pur­chas­ing power of so­ci­ety. Re­gard­less of how Pashinyan an­nounces his un­prece­dented eco­nomic ac­tiv­ity, it still does not af­fect the pop­u­la­tion’s liv­ing stan­dard.

Price rise against the back­ground of fall­ing in­comes of the pop­u­la­tion in Ar­me­nia can lead to an eco­nomic catas­tro­phe.

Al­though the au­thor­i­ties are try­ing to cover the eco­nomic shocks in the coun­try in a de­cent di­gestible for the pub­lic wrap­per, the scale of the prob­lem ac­tu­ally prom­ises to go far be­yond any de­cency.

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