DUSHANBE, September 30, Asia-Plus — Tajikistan’s Antimonopoly Agency is considering the issue of opening a case against one of the country’s largest grain suppliers, limited liability society Zernovaya Kompaniya (Grain Company), for excessively high prices.
According to the Antimonopoly Agency, there are signs of violation of the country’s law on competition and restriction of monopolistic activity in commodity markets. “If it is confirmed that Zernovaya Kompaniya has really overstated the wheat prices unreasonably, the agency will open the case against the company,” the source said.
Under the law “On Competition and Restriction of Monopolistic Activity in Commodity Markets,” the antimonopoly agency can regulate only prices set by dominating entities and monopolists that are on the register of monopolists and before introducing new prices these companies must coordinate them with antimonopoly agency, the source noted.
The volumes of the country’s flour market for January-August 2001 have been estimated at 832,500 tons, while the country’s requirements in flour are 693,000 tons, i.e. the flour supply stood at 120 percent.
Local experts say flour imports constitute 54.5 percent of Tajikistan’s flour market volumes and flour prices in domestic market depend on prices in flour exporting countries. Kazakhstan provides the bulk of Tajikistan’s four imports and the August rise in wheat prices in Kazakhstan has led to increase in flour prices in Tajikistan.
According to the statistical data from the Customs Service under the Government of Tajikistan, an average price of one ton of imported wheat flour increased from US$220 in July to US$264 in August (20-percent rise).
Specialists from the Antimonopoly Agency say that along with objective reasons there are also frequent cases of unreasonable overstating of prices by entrepreneurs that also lead to price volatility.
