DUSHANBE, February 11, 2011, Asia-Plus — Tajik expert in economics Firouz Saidov is certain that selling a part of basic food products from a national reserve is the only way to curb food price hikes in the country.
“Taking into account the current food price situation in the domestic market, I consider that government’s decision to use the national reserve rein in food price inflation is quite appropriate,” said the expert. “Unfortunately, an unfavorable food price situation is observed throughout the world. Many countries across the world are experiencing similar situation. Russia, which is one of world’s largest grain producers and exporters, imposed embargo on grain exports in August 2010 and it will keep the embargo until July this year. The world grain market has reacted to this by raising prices.”
According to Saidov, the government must regulate prices of basic food products such as flour, vegetable oil, sugar and rice and have enough reserves to take measures to curb soaring prices. “However, after such moves the national reserve must be replenished again and demographic indices should be taken into account,” he noted.
According to data from the Ministry of Finance, the 2011 national budget earmarked 65 million somoni for public purchases, which is 25 million somoni more than in 2010.
We will recall that Sohibjon Ziyoduloyev, director of Tajikistan’s Public Procurement Agency (PPA), told Asia-Plus on February 9 that part of flour, sugar and rice from the national reserve will be sold to the population at restricted prices in order to curb increasing food prices in the country. According to him, state-run fairs will be organized across the country on the following Saturday and Sunday and the mentioned food products will be offered without restriction and the prices will be 10-15% lower than the market prices.
