WILL PRICE FOR BREAD DROP OFF?

A1+
22 July, 2008

It is already 2 months since the price for wheat dropped off in the
world market but it did not have a proper reflection on the Armenian
market.

Today the RA State Commission for Protection of Economic Competition
held a discussion-consultation with participation of economic managers
in the market of wheat and flour.

Representative of "Manana grain", "Arsen and Yervand", "Verfar"
companies participated in the discussion. However most of the invited
companies did not turn up.

Ashot Shahnazarian, who conducted the discussion, dwelt on the current
state of wheat and flour in the international and Armenian markets,
as well as on the market dynamics, which cause anxiety from the angle
of economic competition.

According to the survey in the international market price for wheat
and flour has decreased by about 40%, while in the Armenian market,
according to the analysis of the World Bank, the average importing
price increased twice. The World Bank related it to the limited
competition between flour mills and wheat importers.

Representatives of "Manana grain" and "Verfar" companies noted that
they face a great problem in transportation since the prices are high,
there are no enough compartments and sometimes they have to pay great
taxes as the freighter’s disembargation is delayed.

However, Head of the Commission Ashot Shahnazarian did not agree to
the statements on the grounds that the component of transportation
is only 12% in the cost of goods, and non-reflection of the 40%
decrease of international costs is not acceptable.

In the end of the discussion economic agents were given 15-20 days
to review their attitude.