Why Flour Price Went up? Explains Armen Poghosyan

The Chairman of the Union of Consumers Armen Poghosyan told Lurer.com that the increase of the flour price in the market is natural and the causes are apparent. According to him, the reason is that 99% of the imported flour is done by one company.

According to him, similar monopolies exist in other sectors as well, as a result of which they offer any price they wish.

“Whenever there is increase of international prices they point this out but when the opposite is happening they find other justifications,” he said.

Poghosyan also mentioned that when the increase of prices is not linked with the increase of international prices these companies should be punished.

“There is a state committee – the economic competition protection, the main duty of which is to identify and voice these matters. This is the only body that regulates the economic competition and they should fulfill their duties in a proper manner,” he said.

Poghosyan also noted that the legislation doesn’t prohibit monopolies but in the cases when one company has 30% of the market, the state should draw its attention to its activities and policies.

“The financial capacity of these companies should be monitored. If there are illegalities these companies should be sanctioned,” concluded Poghosyan.

Reminder: Recently mass media circulated information that during the past two months the wholesale price of high-quality flour of a 50-kilogram bag went up by 2000 AMD. The first time the bag of flour price went up by 2 USD in April. The last increase of the price was substantiated by the USD revaluation.

The prices of bread haven’t gone up yet because the bakeries are still using the “old” flour and hope that the prices will get back to normal. If the prices don’t go down on the upcoming days the bakeries will have to raise the price of bread.