Armenian consumer watchdog accuses government of overlooking price hikes
28.11.2017,
15:59
An Armenian consumer watchdog accused today the government of failing to use the tools it has at its disposal to curb price hikes.
YEREVAN, November 28. /ARKA/. An Armenian consumer watchdog accused today the government of failing to use the tools it has at its disposal to curb price hikes.
Speaking to reporters, Babken Pipoyan, the head of a non-governmental organization called 'Informed and Protected Consumer', said as early as in March it had emerged that butter prices in New Zealand, which accounts for the bulk of imported butter to Armenia, increased, and the government could have asked domestic producers to increase output, thereby increasing competition in the market. Pipoyan claimed that the rise in food prices is beneficial to the government.
"Price hikes are unpleasant from the point of view of the impoverished population, but at the same time the government benefits from it due to larger tax collections," he said. Pipoyan also noted that a similar uncontrolled situation is observed in the prices for eggs.
"We produce and consume the same number of eggs. So, during periods of growth in consumption which happens as a rule before the New Year and Easter, we have a deficit compensated by import quotas, granted to local producers," he said, noting that if the restrictions on the import of eggs are removed for one year, the prices of eggs would drop significantly, up to 40 drams per egg, down from the current 70 drams.
Another manifestation of poor regulation of the market on part of the government, according to Pipoyan, is a one-sided reaction to the change in world prices.
"We often attribute the price hikes to similar developments in the global markets and this is true, but we do not see the reverse trend: when prices are falling all over the world, in Armenia they remain at the same level," he said.
According to the National Statistical Service, egg prices in October 2017 decreased by 4.7% compared with October 2016, but they grew by 3.3% in November. Butter prices in October surged by 33.3% from the year ago. They grew by another 12.35 in November. -0-
Speaking to reporters, Babken Pipoyan, the head of a non-governmental organization called 'Informed and Protected Consumer', said as early as in March it had emerged that butter prices in New Zealand, which accounts for the bulk of imported butter to Armenia, increased, and the government could have asked domestic producers to increase output, thereby increasing competition in the market. Pipoyan claimed that the rise in food prices is beneficial to the government.
"Price hikes are unpleasant from the point of view of the impoverished population, but at the same time the government benefits from it due to larger tax collections," he said. Pipoyan also noted that a similar uncontrolled situation is observed in the prices for eggs.
"We produce and consume the same number of eggs. So, during periods of growth in consumption which happens as a rule before the New Year and Easter, we have a deficit compensated by import quotas, granted to local producers," he said, noting that if the restrictions on the import of eggs are removed for one year, the prices of eggs would drop significantly, up to 40 drams per egg, down from the current 70 drams.
Another manifestation of poor regulation of the market on part of the government, according to Pipoyan, is a one-sided reaction to the change in world prices.
"We often attribute the price hikes to similar developments in the global markets and this is true, but we do not see the reverse trend: when prices are falling all over the world, in Armenia they remain at the same level," he said.
According to the National Statistical Service, egg prices in October 2017 decreased by 4.7% compared with October 2016, but they grew by 3.3% in November. Butter prices in October surged by 33.3% from the year ago. They grew by another 12.35 in November. -0-
