On Sunday in the stores of Yerevan the retail price of 1 kilo sugar was unexpectedly risen by 150-200 drams. If a day ago a sack of sugar cost 11.000 AMD then on Sunday the price was 17.000. And yesterday there was no sugar at all in the stores of Yerevan. As opposed to that a huge line was created in front of the stores “Yerevan City”, belonging to NA MP Samvel Alexanyan. The reason is that those stores had sugar for sale. 1 kilo sugar cost there 220 AMD, which is cheaper than the sugar price set for the past three years. It’s hard to definitely say what the reason of such machination is.
During the past two days the highest and lowest price of sugar was registered in Armenia. On Sunday the price of sugar was drastically increased and reached 400 from 270 AMD per kilo. On Monday the price was similarly quickly decreased and reached 220 AMD per kilo.
Of course some of the stores have maintained the price of 250-270 AMD per kilo but people were speaking that the sugar price is going to go up in parallel with butter, bread and natural oil. People stood in line in shops to buy sugar, in some shops sugar was sold at a double price. One could hardly find sugar in Yerevan shops as of yesterday morning. And the interesting thing is that those stores have defined less price for sugar than usual – 220 AMD per kilo. That is normally the wholesale price. Surmalu, Petak and other wholesale markets are buying sugar at that price. All shelves are empty, and shop-assistants are unaware of reasons. We encountered the opposite scene at “Yerevan City” supermarket on Tigran Mets Street. To our question why the sugar price is so low in that store the salespersons said, “The price is low for you to buy.” There was a crowd of people in front of the store and the sales staff even wasn’t able to serve to people. The sacks were opened immediately and being emptied. And the trucks were transporting new portions of sugar to the store. “Do you know if sugar price is going to go up? You should buy too. Yesterday the price was 300 in our Saritagh store. Today my neighbor went to buy at 400,” was complaining a woman. A man exited the store; he was probably one of the managers. He not only refused to answer our question but also forbad us to take photos. And the guy, who was selling sugar, removed the label from wall, which said “sugar 220 per kilo”. Yesterday sugar was sold at 220 AMD in Petak and Surmalu markets. Moreover, staring from noon yesterday the sales points of those markets didn’t have any sugar left. “Everybody got here from stores and bought it all to sell in their stores,” said a salesman. This person refused to introduce himself and said that the price is not going to change and that it’s only a game. The burden movers of Petak were of the same opinion. They perfectly knew what happened to the price of sugar on Sunday. “Yes one of those ones was selling sugar at 17.000 per sack. In past it was 11-12 thousand,” said one of them. “Now the price is again 11.000.” He insisted that the wholesale sellers of markets don’t have any connection to the price rise. Only the importers have done that to have 6000 profit in each sack overnight. It is known that the only importer of sugar in Armenia is A Deputy Samvel Alexanyan, owner of Salex Group. Thus, the only rumors of yesterday were connected with his name. He has created an artificial deficit and has created panic to justify the price increase. Let’s remember last Friday the State Commission for Economic Competition Protection (SCECP) fined the Salex Group because it has raised the price of the imported butter. The customs price of 1 kilo of butter is 582 AMD. The price of the butter in the markets was 1700 AMD per kilo in August; in September – 2000 AMD, in October – 2200 AMD. And it seems that as a response Alexanyan has raised the sugar price just for one day. But there is contradiction here. Why would Alexanyan sell sugar at such a low price as 220 AMD in his “Yerevan City” stores? Moreover, the saleswoman of that store said that the price was lowered just for one day because on the next day the price was brought to its normal at sold at 240 AMD. Sugar was sold at 220 AMD at a food store not very far from the Yerevan City, the saleswoman of which said that sugar will be sold at a cheaper price the next day. And Samvel Alexanyan, who has been to Georgia these days, has refuted this information when speaking to A1+ journalists on the phone. “The sugar price didn’t go up and will not for one year,” said Alexanyan. The panic of the market Alexanyan connected with the assumption that perhaps too many people wanted to buy sugar simultaneously. “What will happen if three million people decide to buy sugar? I guarantee at 100% there is no price increase,” insisted Alexanyan by connected the price increase with mass panic. But there is always an assumption that there is also one more person, who wishes to interfere into the sugar market as an importer and the increase of prices is organized by the “newcomer”. And Alexanyan has lowered the prices deliberately to show that the sugar imported by him is cheaper. Let us note that till now Sil Concern and Grand Candy companies have also been able to import sugar in little amount but that was used in the production and not for wide sale. Nevertheless, what happened in the Armenian economy states that it’s far from any economic theories or explanations. Voce versa, this phenomenon is connected with the desire of importers and their sponsors. Yesterday we tried to receive information from the SCECP. The press officer of the secretary of the State Commission for Economic Competition Protection, Armine Udumyan said that the Commission will follow the whole process and if finds out that the price increase was groundless certain penal methods will be applied. Also, this is how NA Speaker Tigran Torosyan reacted on this price raise, “Firstly, you should have weighty arguments on this score. Secondly, we must differentiate between natural and artificial rises when some people seize the opportunity and benefit from the current situation. These people must certainly be punished,” he said.