TIGHT CONTROL OVER PRICE RISE NEEDED AT ARMENIAN FOOD MARKET

ARKA
Feb 29 2008

YEREVAN, February 29. /ARKA/. Tight control over price rise is needed
at Armenian food market, Armenian President Robert Kocharyan said
Friday speaking before Yerevan State University students.

He said monitoring must be held to see whether the price rise is
artificial or not. He said all wrongdoers must be punished. The head of
state thinks the authorities must cope with price rise consequences
quicker by means of indexation of low-income people’s pensions,
benefits and wages.

Kocharyan said the government must make every effort to relieve
people’s losses.

He said that food prices are growing all over the globe. He finds it
natural that the worldwide price rise has impacted Armenian market.

He said that price rise at world markets is caused by two factors. The
first factor is that fuel price grew to $100 per barrel and the second
is bio fuel usage.

Kocharyan said that the United States spent 25% of crops for bio fuel
generation in 2007 alone, and Japan is planning to target 25 to 30%
of its crops in 2009 and 2010.

"This drives grain crop, flour and fodder prices up. Prices for
derivative products, such as butter, grow as well. I think the world
will face price rise throughout 5 to 15 years", Kocharyan said.

Statistical figures show that food prices at Armenian markets grew 4.4%
in January 2008, compared with December 2007.

Annual inflation on foodstuff was recorded at 10.3%.