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ARMENIA: BAKERY MARKET KEEPS FACING SURGE DESPITE LOWERED FLOUR PRICES
The prices for bakery products keep surging in Armenia though the
major flour manufacturers say they have significantly reduced their
price offer.
Mancho Group and Manana Grain, which are big stakeholders on the
Armenian market, have decreased the per 50kg. price of flour by 1,650
Drams ($4.05).
Speaking to Tert.am, Mancho Group CEO Ivan Mosoyan said they have
reduced the price by four times in the past 15 days.
The surge in the bakery prices has absolutely nothing to do with
us,he said. We have reduced the price by 1,650 Drams for every sack
[of flour]; so they shouldnt have permitted the surge as that covers
natural gas and electricity expenses.
Mosoyan explained their price policies by the lowering wheat prices
in Russia. But because they raised the costs for the power generating
substances and because we do not want the bread prices to go up we
lowered the prices flour flour,he said.
Mosoyan added that despite the lowering trend on the Russian market,
wheat now sells for a 30 Dollar higher price in the country. If the
surge continues, he said, the company will have to increase the prices
of flour.
"We have reduced the price for a 50kg. [flour] sack by 4 Dollars. It
may go up by 1 Dollar again, bit we don't know ot for sure now,"
he added.
As for Manana Group, the company's CEO Gurgen Nikoghosyan also
confirmed that the flour prices have been reduced by 1,650 Drams
since July.
"Bread prices have surged, but that isn't under our
responsibility. There has been a surge in the natural gas and
electricity prices, so those are their calculations," he explained.
Asked whether future surge on the flour market is possible, Nikoghosyan
hesitated to give a definitive answer, saying only that the market
permanently experiences volatility
"I do not make any predictions for now. I guide myself by the prime
cost which determines the price," he noted.
In further comments to Tert.am, President of the Consumers' Rights
Protection NGO Armen Poghosyan said the impact of the lowered flour
prices is significantly essential.
"That should have impacted the bread [prices]. It is a chain we
don't see the outcome of; hence the State Committee for Protection
of Economic Competition, which says there are no dominant positions
on the market, has something to do in this connection. We are aware
that the import is monopolized," he said, calling for appropriate
efforts to monitor the market.
A Committee representative had earlier told Tert.am that the presence
of a manufacturer with monopolistic positions on the market prevents
them from taking any specific steps.
The prices for bakery products keep surging in Armenia though the
major flour manufacturers say they have significantly reduced their
price offer.
Mancho Group and Manana Grain, which are big stakeholders on the
Armenian market, have decreased the per 50kg. price of flour by 1,650
Drams ($4.05).
Speaking to Tert.am, Mancho Group CEO Ivan Mosoyan said they have
reduced the price by four times in the past 15 days.
The surge in the bakery prices has absolutely nothing to do with
us,he said. We have reduced the price by 1,650 Drams for every sack
[of flour]; so they shouldnt have permitted the surge as that covers
natural gas and electricity expenses.
Mosoyan explained their price policies by the lowering wheat prices
in Russia. But because they raised the costs for the power generating
substances and because we do not want the bread prices to go up we
lowered the prices flour flour,he said.
Mosoyan added that despite the lowering trend on the Russian market,
wheat now sells for a 30 Dollar higher price in the country. If the
surge continues, he said, the company will have to increase the prices
of flour.
"We have reduced the price for a 50kg. [flour] sack by 4 Dollars. It
may go up by 1 Dollar again, bit we don't know ot for sure now,"
he added.
As for Manana Group, the company's CEO Gurgen Nikoghosyan also
confirmed that the flour prices have been reduced by 1,650 Drams
since July.
"Bread prices have surged, but that isn't under our
responsibility. There has been a surge in the natural gas and
electricity prices, so those are their calculations," he explained.
Asked whether future surge on the flour market is possible, Nikoghosyan
hesitated to give a definitive answer, saying only that the market
permanently experiences volatility
"I do not make any predictions for now. I guide myself by the prime
cost which determines the price," he noted.
In further comments to Tert.am, President of the Consumers' Rights
Protection NGO Armen Poghosyan said the impact of the lowered flour
prices is significantly essential.
"That should have impacted the bread [prices]. It is a chain we
don't see the outcome of; hence the State Committee for Protection
of Economic Competition, which says there are no dominant positions
on the market, has something to do in this connection. We are aware
that the import is monopolized," he said, calling for appropriate
efforts to monitor the market.
A Committee representative had earlier told Tert.am that the presence
of a manufacturer with monopolistic positions on the market prevents
them from taking any specific steps.