Flour price hikes in Armenia

Grain processing and flour producing plants have increased flour costs by AMD400-600 (US$0,83-1,20) per sack (50kg). In particular, before the holidays, Echmiadzin-based milling company sold flour at AMD10,200 (approx.. US$21) per sack, whereas now it is sold at AMD10,700 (approx. US$22). The company officials note, they are unaware of the reasons for price increase.

According to Sayad Gasparyan, the head of Baghramyan flour mill enterprise, increase in prices has been conditioned by the transportation problems that occurred in the Upper Lars. The only overland route, linking Armenia with Russia, is closed from time to time due to the poor weather conditions, which hampers the production process.

Meanwhile, Armenian media have reported that the price hike is due to the monopolists who are prompting the prices in country’s various fields. However, Sayad Gasparyan claims, monopoly is not the case and as many as 55 companies are engaged in this business in Armenia.

In response to the aforesaid, the Hraparak newspaper focused on the enterprises owned by Samvel Aleksanyan, a renowned Armenian businessman and Tashir Co. Group owner, noting that there were numerous enterprises, registered on different persons, that were holding leadings positions at the market.

A hike in flour costs has already triggered increase in bread prices in certain parts of Armenia. Namely, bread price increased by AMD0,30-0,40 in Razdan and Goris towns. Bread prices in Yerevan shops haven’t changed yet.