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Fixed prices may led to commodity deficiency, says expert

DUSHANBE, June 20, 2011, Asia-Plus — An initiative of the Antimonopoly Agency under the Government of Tajikistan to introduce fixed prices for a number of goods may lead to commodity deficiency in consumer market of Tajikistan, Bahodur Habibov, chairman of the Tajik Consumers’ Union, said in an interview with Asia-Plus.

According to him, fixed prices were introduced in some countries using free market economy at different times as need arose, “but budgets of those countries had to incur additional costs.”

According to him, the antimonopoly agency’s decision to introduce state regulation of prices for some commodities may lead to deficiency of them, “if the state does not cover the supply costs.”

“For example, deficiency of some types of gasoline is now felt in the country,” said Habibov, “Even rumors about introduction of the fixed prices will lead to decrease in commodity deliveries.  Business is business and nobody wants to suffer damage.”

We will recall that the Antimonopoly Agency offers state regulation of consumer prices for a number of socially important goods.  Specialists from the Antimonopoly Agency have developed a draft document on the procedure of formation and use of free prices for commodities and services.  This document is also expected to determine the rate of markup for a number of socially important goods, including oil products.

The Antimonopoly specialists say this initiative is aimed at ensuring validity of prices set by entities of retail trade.

Tajikistan adheres to free market economy, and therefore, the government now sets prices only in sectors like energy, transport and communications.

Consumer prices in Tajikistan have risen dramatically over the last year.  According to the National Bank of Tajikistan (NBT), consume prices rose 14.4 percent in a year to April 30, 2011 and inflation for January-April this year stood at 6.1 percent.

Local experts say food prices in Tajikistan have risen dramatically due to a recent increase in the price of fuel and the U.S. dollar”s rise against the local currency.  According to official data, Tajikistan imports 60 percent of its food and all of its fuel and mineral fertilizers.

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