NO RISE IN GRANULATED SUGAR PRICES ENVISAGED WITHIN A YEAR

Noyan Tapan
Oct 23, 2007

YEREVAN, OCTOBER 23, NOYAN TAPAN. No rise in granulated sugar prices
is envisaged within a year, while the country’s stock of granulated
sugar currently will suffice for 6 months, the chairman of the
RA State Commission on Protection of Economic Competition Ashot
Shahnazarian stated on October 23. At the same time, he said that an
artificial agiotage situation has been created in Armenia’ granulated
sugar market in recent days: for example, 10 days’ stock was sold
yesterday. According to the commission chairman, if the situation is
not rectified within the next two days and the problem of artificial
deficit is not solved, the commission will use respective penalties
envisaged by law.

A. Shahnazarian said that granulated sugar is now sold at 220 drams
(0.6 USD) in shops of the company importing it, whereas in other shops
prices make 230-240 drams. According to the commission’s information,
this situation has been mainly created by shop employees, and no
violations have been committed by the importer. 8-9 companies import
granulated sugar into Armenia, with Salex Group supplying 84% of
granulated sugar to the market.

In the words of A. Shahnazarian, the maximum annual demand for
granulated sugar is 60 thousand tons in Armenia. In the past 5 years,
prices of 1 kg of granulated sugar fluctuated from 190 to 350 drams
in the country.