DUSHANBE, May 13, 2011, Asia-Plus — Administrative measures to curb rising food prices are inadmissible, chairman of the board of the Free Market of Tajikistan Center public association Konstantin Bondrenko said, commenting on the recent detention of a of number of butchers in Dushanbe for failure to comply with the municipal government’s recommendation to lower meat prices.
According to him, the administrative methods will just exacerbate the situation. “This will lead to appearance of so-called black market and the prices will be much higher than in free market because they will include entrepreneur’s risk for illegal activity,” Bondarenko said.
He noted that the supply of meat was now inadequate to meet demand. “Meat is now bought up practically in the first half of day and its quality leaves much to be desired,” the expert said, noting that the government must seek other ways to curb price hikes.
“If we cannot influence the factor such as fuel because the country imports all of its fuel, there ought to review the tax policy,” said Bondarenko, “May be the authorities ought to curtail a part of public expenses, cut down capital construction and due to this to reduce taxes for the majority of producers of essential goods.”
Rahmatillo Zoirov, head of the Tajik Legal Consortium, also considers that the detention of butchers for selling meat at higher prices is inadmissible.
According to him, mayor’s recommendation to lower the meat prices is unfounded in terms of the facts and the law. “Whether entrepreneur will overprice its goods or not, it is a moral aspect,” said the lawyer, “It is impossible to regulate prices by administrative measures.” He proposed to develop market mechanisms “such as competition and tax immunity.”
We will recall that Qudratullo Ghulomov, chief of staff of the Dushanbe police directorate, told Asia-Plus that at least ten butchers have been detained and questioned in Dushanbe this week for failing to comply with the municipal government’s recommendation to lower the meet price.
Issues related to reduction in prices for some basic food products at local bazaars were a major topic of a meeting of the Dushanbe mayor’s office that took place on May 7. Taking into account the findings of monitoring conducted at the city’s bazaars, the Dushanbe municipal government reportedly called on market traders to lower the prices they charge for flour and meats, following a spike in prices of basic food products. Merchants running butcher’s shops at local bazaars have been recommended to sell beef at no more than 23.00 somoni per one kilogram and lamb at no more than 24.00 somoni per one kilogram. The price of meat two weeks ago was about 21 somoni. The beef and lamb prices rose at the end of last week to 27 and 30 somoni per kilogram, an increase of some 33 percent.
Radio Liberty’s Tajik Service reports butchers protest that municipal officials are not empowered to dictate prices. They say the higher prices they charge reflect a wholesale price increase caused by an abrupt rise in gasoline prices coupled with the decline in value of the somoni against the U.S. dollar.
