Retail and Wholesale Sugar Prices Decrease: State Commission

The State Commission for the Protection of Economic Competition (SCPEC) has published the results of a study on the "Sugar" commodity market conducted in 2019. According to the findings, the market share of leading companies has decreased, and significant price reductions have been recorded.

The primary focus of the study has been the examination of existing state regulations and the legislative framework in the sector and its impact on the competitive environment, studies of the market structure, pricing, cost structure, and sales chains, among others.

According to data presented by the State Revenue Committee of the Republic of Armenia, 8,000,000 kg of sugar was imported into the territory of the Republic from January to October 2019 by 47 economic entities. The imported sugar was mainly of Ukrainian origin. During the same period, sugar production in Armenia amounted to 59,800,000 kg.

The market shares of economic entities have changed; the proportion of larger importers and sellers, particularly "Alex Holding" and "Alex and Holding" LLCs, has decreased in the structure of imports and sales (from 67% down to 49% for imports, and from 95% down to 88% for sales). The share of "Armen-Hamik Brother" LLC in the structure of imports in 2019 compared to 2018 increased from 15% to 30%, while in the sales structure, it grew from 3% to 8%.

According to the study's results, retail and wholesale sugar prices decreased from an average of 387 dram to 292 dram from 2017 to 2019. The commission noted that from January 2018 to October 2019, the sugar market exhibited high concentration based on imports and sales.