Monitoring Price Dynamics, No Entity Will Violate and Escape Responsibility: Gevorgyan

“In the last two days, we have noticed a positive trend in the decrease of prices, but this does not mean that prices have reached February levels,” said Gegham Gevorgyan, the chairman of the State Commission for the Protection of Economic Competition, during a press conference at the government press center on April 10.

He informed that the commission's work continues around the clock, with teams conducting studies in Yerevan and the regions on a rotating basis. There are no alarming phenomena regarding the existing supplies at large economic entities, and the quantity of food products is adequate.

According to him, any violations by economic operators in extraordinary conditions will be seen as an aggravating circumstance.

The commission's study shows that the price of buckwheat was 705 drams in February, peaked at 730 drams in April, and is now 710 drams, indicating a decrease. In the case of citrus fruits, particularly oranges, the price increased by 60 drams, yet it remains far from February prices, attributed to transportation issues.

“Local production prices are naturally decreasing depending on seasonality. Currently, the prices of tomatoes and cucumbers are lower than in February. As for flour, as of April 8, we have a decrease of 5 drams, from 290 drams to 285 drams, with the original price being 275 drams. The price of bread in large chains has not changed in any way. Interestingly, the price increase did not happen all at once; this fact may indicate that prices rose not because of the coronavirus but over a certain period. For example, the price of flour increased from March 14 and remained until March 26, which may be related to currency issues and transportation problems due to quarantine regimes in various countries,” Gevorgyan noted.

Addressing the reports of bread price increases in Vanadzor, the commission chairman mentioned that they have met with bread producers. Studies have shown that bread in Vanadzor is among the cheapest compared to other cities. More than 40 economic entities operate in Vanadzor, without any dominant players, and the price increase has been related to other issues, which are currently being investigated.

“One part has been related to flour prices, another to packaging, as in recent days more protective packaging has been used, and the main reason has been associated with consumption volumes. Schools and kindergartens have been closed, making it difficult to sell baked goods. There have been price changes with a couple of types of flatbread, driven by the fact that people started baking bread at home. Conversely, the price of lavash has decreased. We will verify this reasoning and the facts to understand better. The only concerning aspect is that the change in bread prices has occurred uniformly; economic operators have shown cooperation among themselves, which we also need to understand as this is concerning from a legal perspective,” Gevorgyan emphasized.

The commission chairman also reported that comparisons have been made with the same period in 2018-2019, but this has not been done to justify price increases. The commission has also initiated proceedings in the markets for butter, sugar, eggs, gasoline, and diesel. Proceedings are also planned for other significant commodity markets, including oil, chicken eggs, and chicken meat.

“We are monitoring price dynamics, and there will be no entity that violates and escapes responsibility. Moreover, in this situation, making a violation will be considered an aggravating circumstance,” the speaker warned.