Prices of Armenian Food Products have Increased by 13% in 20 Days

The dram’s depreciation has had an immediate effect on socially significant imported goods in Armenia, whose prices have increased since November 20th. The latter was stated today at a government cabinet meeting by Artak Shaboyan, Head of the State Commission for Protection of Economic Competition, who noted that his institution is monitoring the prices of 16-17 products. Among the products are sugar, butter, oil, poultry (chicken), eggs, coffee, flour.

Shaboyan said that the monitoring was conducted from the beginning of November to December 10, when the Armenian dram’s exchange value dropped 13% to the dollar from 411 to 463 dram.

According to the official, price increases were also registered in the domestic production market, especially dairy sector, which the commission monitored.

“Naturally, the exchange rate would also leave its influence on the increase of dairy prices, because dairy production costs include the import of certain products and ingredients. In addition, the production volume of dairy products in the Republic significantly decreases during winter months and the exchange value may leave its effect in price increases for dairy by means of the import of milk powder. However, this still isn’t a final position. We have begun a broad study regarding the issue, taking into consideration that dairy products have been discussed among the public, and once we conclude the study we will present our final position. In fact, not all dairy producers are increasing prices. It is usually related to two major producers, Ashtarak Kat and Dustr Marianna companies,” said Shaboyan.

The latter stressed that the price changes of the 16-17 products varied from ranges of 2% to 12% to 13%, while dram was depreciated by 13%.

“It is possible to say that the price changes are in line with the exchange rate depreciation, and it does not exceed the exchange rate’s changes upper ceiling,” stated the Commission head.

Shaboyan mentioned the significant price increase of buckwheat which has affected consumers.

“This product is mainly imported from the Russian market, and during this year, due to the fact that buckwheat harvest has dropped by 20%, prices have significantly increased a couple of times. In fact, the Russian anti-monopoly service has already begun a study toward this issues, and has initiated civil suits against certain businesses,” said Shaboyan.