Global Decline in Sugar Prices Not Reflected in the Armenian Market

Food prices around the world have been decreasing at a fast rate; in particular, global prices of sugar and vegetable oils fell to their lowest level since 2009. However, the global dip in the prices is not reflected in the food prices in Armenia, even when the majority of these products is imported, Armenian Haykakan Zhamanak daily wrote on Saturday.

According to the official statistics, sugar prices in Armenia have increased by 10 percent in the past year, while in the global market the prices went down by 23 percent (within a year, the price per ton went down to $367 from its previous value of $480 on the London Stock Exchange).

“Taking into account the devaluation of the national currency in this period, sugar prices in Armenia should have been reduced by almost 9 percent, i.e., the price per kilo should be AMD 325, rather than the current AMD 370, in which case the sugar importer (“manufacturer”) would not have lost anything in revenues. Meanwhile, the current sugar importer, "Alex Grig" company, which has “no relation to Samvel Aleksanyan whatsoever,” receives an additional profit of 45 drams per kilo of sugar. That amounts to AMD 4,5 billion, or $9 million a year,” the daily wrote.

Note, the monopoly on sugar imports to Armenia belongs to “Alex Grig” company which is owned by ruling Republican Party MP, oligarch Samvel Aleksanyan.