Tweet
BAGRAT ASATRYAN: ARMENIA SHOULD ENLARGE ITS FOOD RESERVES
/ARKA/
August 24, 2010
YEREVAN
YEREVAN, August 24. /ARKA/. Armenia should enlarge its food reserves,
Bagrat Asatryan, director general of Garni Invest Universal Credit
Organization and former chairman of the Central Bank of Armenia,
said Monday at a news conference.
In his opinion, the recent developments connected with fluctuation
in world prices for grain will add troubles to Armenia.
"Armenia is not competitive in the region - insufficient domestic
output, cuts in areas under crops and limited alternative deliveries
are driving domestic market prices up," Asatryan said.
He finds the present food reserves in Armenia scant and thinks that
the unsolved Karabakh problem and the blocked transportation links
aggravate the matter.
The expert is convinced that Armenia can resist challenges by enlarging
food reserves.
As another step should be taken to avoid volatility at domestic grain
market, Asatryan pointed out the necessity to liberalize the grain
import market in Armenia and put an end to the monopoly that gives
room for unjustified price hike.
"It's not imports that triggered the recent rise in grain and flour
prices in Armenia, since after certain fluctuation in the beginning
of this year and 15-to-20-percent price hike in July things in world
grain markets were put right, and grain prices went about 10 percent
down in the recent two weeks" he said.
Despite this, flour prices in Armenia have leapt 20 to 25% to AMD
11,000 per bag over the period between August 1 and 7.
More than that - the double fall recorded over the period between
2008 and Jan 2010 at the world market produced absolutely no effect
in Armenia, Asatryan said.
Vardan Ayvazyan, chairman of Armenian National Assembly's economic
committee, doesn't share Asatryan's opinion and sees no need to
replenish food reserves.
He told journalists that the country's reserves are sufficient to
cater for essential strategic needs.
Explaining the precipitous surge in grain and flour prices in Armenia,
the lawmaker said economic entities, pending imminent price hikes in
world markets, acted this way to secure their interests.
He said that the antitrust agency has already embarked on an
appropriate study.
Armenia imports grain mainly from Russia. These imports cover only 30%
of domestic demand.
Some 315,600 tons of Russian grain have been brought to Armenia
over the period between July 2009 and June 2010 against 327,900 tons
imported from July 2008 to June 2009.
Armenia consumes 650,000 to 720,000 tons of grain, of which 4305,000
to 450,000 tons as food.
Armenia produces 168,000 to 175,000 tons, and the deficit is filled
by imports (380,000 to 420,000 tons every year in the last five years).
The mounting prices for imported grain that drive also flour and bread
prices up prompted the State Commission for Protection of Economic
Competition to launch own monitoring.
Russian Prime Minister Vladimir Putin, concerned over the drought
that raged this year in Russia, issued a decree imposing temporary
restrictions on wheat, corn and flour exporters.
From: A. Papazian
/ARKA/
August 24, 2010
YEREVAN
YEREVAN, August 24. /ARKA/. Armenia should enlarge its food reserves,
Bagrat Asatryan, director general of Garni Invest Universal Credit
Organization and former chairman of the Central Bank of Armenia,
said Monday at a news conference.
In his opinion, the recent developments connected with fluctuation
in world prices for grain will add troubles to Armenia.
"Armenia is not competitive in the region - insufficient domestic
output, cuts in areas under crops and limited alternative deliveries
are driving domestic market prices up," Asatryan said.
He finds the present food reserves in Armenia scant and thinks that
the unsolved Karabakh problem and the blocked transportation links
aggravate the matter.
The expert is convinced that Armenia can resist challenges by enlarging
food reserves.
As another step should be taken to avoid volatility at domestic grain
market, Asatryan pointed out the necessity to liberalize the grain
import market in Armenia and put an end to the monopoly that gives
room for unjustified price hike.
"It's not imports that triggered the recent rise in grain and flour
prices in Armenia, since after certain fluctuation in the beginning
of this year and 15-to-20-percent price hike in July things in world
grain markets were put right, and grain prices went about 10 percent
down in the recent two weeks" he said.
Despite this, flour prices in Armenia have leapt 20 to 25% to AMD
11,000 per bag over the period between August 1 and 7.
More than that - the double fall recorded over the period between
2008 and Jan 2010 at the world market produced absolutely no effect
in Armenia, Asatryan said.
Vardan Ayvazyan, chairman of Armenian National Assembly's economic
committee, doesn't share Asatryan's opinion and sees no need to
replenish food reserves.
He told journalists that the country's reserves are sufficient to
cater for essential strategic needs.
Explaining the precipitous surge in grain and flour prices in Armenia,
the lawmaker said economic entities, pending imminent price hikes in
world markets, acted this way to secure their interests.
He said that the antitrust agency has already embarked on an
appropriate study.
Armenia imports grain mainly from Russia. These imports cover only 30%
of domestic demand.
Some 315,600 tons of Russian grain have been brought to Armenia
over the period between July 2009 and June 2010 against 327,900 tons
imported from July 2008 to June 2009.
Armenia consumes 650,000 to 720,000 tons of grain, of which 4305,000
to 450,000 tons as food.
Armenia produces 168,000 to 175,000 tons, and the deficit is filled
by imports (380,000 to 420,000 tons every year in the last five years).
The mounting prices for imported grain that drive also flour and bread
prices up prompted the State Commission for Protection of Economic
Competition to launch own monitoring.
Russian Prime Minister Vladimir Putin, concerned over the drought
that raged this year in Russia, issued a decree imposing temporary
restrictions on wheat, corn and flour exporters.
From: A. Papazian