YEREVAN, March 17. /ARKA/. A government bill to set price rise ceiling can lead to commodity deficit in Armenia, given that it goes through the parliament and signed into law, Ara Nranyan, MP from Armenian Revolutionary Federation Dashnaktsutiun, said Wednesday during a discussion focused on inflation and Armenian monopolies.
On March 10, the Armenian government approved amendments to the trade and services law and the administrative offences code.
The amendments empower the government to interfere in price-making process in the event of 30-percent rise in 20 names of staples over one month.
In accordance with these changes the government would be able to exercise this right within 90 days to put things right.
“I am convinced that this (commodity deficit) will happen, since I don’t believe that economy entities can sell goods at prices below cost contrary to the reason prompted by outside factors,” he said.
Explaining this, Nranyan said that price rise ceiling can be set for particular large manufacturers or importers, but it shouldn’t imply to already produced or imported goods.
In his opinion, this policy can give grounds to consumers for sweeping goods from shops.
He was also puzzled by the government’s decision to set price rise ceiling at 30%.
“Does it mean that 20% rice is not enough to interfere? What we will have by the end of the year if price rices 10-15%?”
Nranyan was doubtful whether the government will use this mechanism.
This decision applies to prices for beef, poultry, fresh fishes, condensed milk without sugar, butter, cheese, eggs, potatoes, onion, carrots, tea, wheat, rice, buckwheat, flour, vegetable oil, sugar, bread and salt. -0-
