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What Determines the Price Change of Foodstuffs?

Georgia’s  Finance Minister Nodar Khaduri says that  the country’s economy grew  8.2%  that is the Georgian Dream’s  merit.

The Minister notes  that after the 2012 parliamentary elections, prices reduced for various products, including sugar, meat and gasoline.

“During the National Movement 1 kg of meat cost GEL 17 now GEL 10-12, 1 kg of sugar cost  GEL 2.50, now – GEL 1.35, petrol price reduced by GEL 0.40”, – said the Finance Minister in his newspaper interview.

Companies  engaged in this business do not agree with the  Finance Minister.

Alkhan Alizadeh, Agara Sugar managing director, states “Commersant” that the price of sugar depends on the situation on world markets, so it does not matter who is in power. According to him, the highest price of sugar was recorded in 2013, when one ton of the product cost $ 1 000.

Vano Mtvralashvili,  Chairman  of the Oil Importers’ Union,  also says  that Georgia’s oil price is  dependent on international prices. A drop in international  prices r will have an impact on  Georgian prices  in about 2 months, when importers’ stocks run out and fuel  is purchased at  new, discounted prices.

Nika Peradze , a representative of the meat importing company Kant  explains to  “Commersant” that the price of meat is set  by the manufacturers, while manufacturers change prices  depending on  elasticity of supply and demand.