It’s known for everybody that that Armenia’s economy is monopolized. So is especially the sector of importation, the ruthless consequences of which we feel on our pockets every day.
The monopolized economy sometimes has an abrupt demonstration. The best example for that was the abrupt rise of the sugar price. It was when during one day the price of the sugar for one kilo reached 600 AMD and on the next day it went down back to 240250 AMD. Sugar importation is fully monopolized in Armenia, the sole importer of which is an NA MP Samvel Alexanyan through his Salex Group CJSC. It’s quite famous that the monopolized importers receive super incomes from the importation. And the super income increases day by day because of the USD devaluation. In order to well understand how much profit the importer receives from sugar we can do a simple math. Let’s base on the results of the RA National Statistics Service. Thus, in 2006 56.658 tons of sugar was imported, the total cost of which amounted to 16 million 28 thousand USD if calculated at 28 cents or 102 AMD per kilo. According to the NSS the USD rate was 364 drams last year. The 28 cents or 102 AMD also excludes the customs cost of the sugar. After paying the customs cost the price will be 36.5 cents or 132 AMD. This is the price the importer pays for sugar. After examining the prices in over a dozen stores we found out that the average price of sugar for a kilo is 220 AMD. That’s how much sugar was sold at Alexanyan’s supermarkets Kaiser and Yerevan city on the days when the sugar price in other stores was 600 AMD. Now let’s count to see how much income the Salex Group receives only from sugar importation. As we said the wholesale price of sugar in Armenia is 220 AMD and the cost when imported in Armenia is 132 AMD. This means that Salex Group receives 88 AMD from each kilo or 66% income. And so in 2006 the Salex Group received 4 billion 995 million AMD or 13.6 million USD income from sugar importation or 1.1 million USD every month. Of course, after consumption the importer pays an income tax. After being taxed certain percent of the profit is decreased but he still receives super incomes. This year the importer will receive more income because the USD rate was even more devalued compared to the past year. Besides that, according to the NSS the expenses of RA population in 2007 were increased by 25%. If ignoring the data of the NSS then each of us monthly spends 1.4 kilograms sugar. That is not the sugar that we buy and take home with us. This includes the sugar, which we eat in the form of cakes, cookies, jammed fruits, candies, etc. Besides that a certain part of the produced jammed fruits are being exported from Armenia, which means that part of the sugar is not even consumed in Armenia. It becomes quite clear that part of the sugar is in the shady circulation. Same calculation can also be done for other imported goods.