Head of Competition Commission Discusses Product Deficit and Need for Bulk Purchases in Armenia

The Chairman of the State Commission for the Protection of Economic Competition, Gegham Gevorgyan, assures that there is no product deficit in Armenia and finds the need for bulk purchases unclear, while adding that food prices are rising globally and the price of oil will increase.

Gevorgyan made these statements during a briefing with journalists. He stated, "There is no product deficit in Armenia. What is happening resembles what occurred during the coronavirus pandemic. People are making large purchases in a single day, and retailers and suppliers cannot transfer the volume from warehouses to stores within a day or two. Just as we assured during the pandemic that there would be no issues, we say the same now: there will be no issues. It is at least unclear to me why there is a need for bulk purchases. That product will just sit at home and then spoil. If we were concerned that the supply of any product would not be sufficient, we would restrict sales and implement other mechanisms. Currently, there is no such problem, " said Gevorgyan.

Addressing the concern that Russia might close exports of wheat, flour, oil, and sugar to EAEU countries, he said this route would involve restrictions where each EAEU country will receive the necessary quantity of products per its demands through quotas. "We have presented the list of quotas according to standard calculations broken down by months, and there are no issues," the chairman of the Competition Commission assured.

Regarding the observation that the price of sugar has reached as high as 600 drams, Gevorgyan mentioned that it could even be 700 or 800 drams at certain stores. He noted that the Commission does not monitor such pricing, focusing only on products with significant volume. "If sugar costs 700 drams per kilogram, we will take action. We know the price of every product. If a certain type of sugar or sugar in special packaging or from a particular store is at 700 drams, it does not mean that the price of sugar in the country is 700 drams," he added.

Gevorgyan also highlighted, "Yes, food prices are on the rise, and oil prices will increase; prices are globally rising. In Armenia, compared to many other countries, prices are much lower. Products from Russia are coming at a more favorable price."

The Chairman of the Competition Commission mentioned ongoing efforts to find cheaper routes with suppliers to avoid price shocks. He noted that there is at least a two-month supply of diesel fuel at current prices in Armenia, although some suppliers might not have it. "Regarding sugar, if a new batch is acquired or if beets, which are rather expensive at the stock exchange, are involved, there may be a slight price increase. However, currently, we do not face such a problem," Gevorgyan concluded.