Ministry of Economy and Industry did not see collusion of suppliers of agricultural products
Earlier , on January 15 Turan published the results of the investigation "High prices of potatoes caused by monopolization ."
This conclusion came on the grounds that the price of local potatoes for a few days rose in Baku markets and doubled from 70-80 kopecks to 1.5-1.8 manat, somewhat less was in the regions. Also rose imported potatoes.
This happened immediately after the December 3, 2013 Tariff Board increase in fuel prices in Azerbaijan by 30-40% %. Increased by 25% the prices of onions, carrots, cabbages, etc.
Also during the investigation it was revealed that in all markets of the country , including the place of cultivation and storage of this product, wholesale and retail prices are the same , and vegetable storage is controlled by large businesses. Price mechanism and leverage is concentrated in the hands of a single syndicate of officials in cooperation with major landowners , manufacturers, suppliers and importers. In addition, though imported merchandise passes inspection by customs, it does not meet the qualitative characteristics of the accompanying documents. As a result, the people are sold not food, but technical varieties of potatoes at a fixed price.
The agency appealed to the Ministry of Economy and Industry for a comment. In response, it received a letter signed by the Chief of Staff Samir Veliyev . The document is reference to Article 13-1 (state control over compliance with antitrust laws in the implementation of transactions concluded between entities in the acquisition of shares on the Act of Azerbaijan "On anti-monopoly ", providing a limit for market saturation by one business (35% and above). The letter states that in 2013 the market was delivered ( including imports) 901.6 thousand tons of potatoes , and there is no manufacturer or supplier with a volume 315,600 tons or more , which could be attributed to the monopolists.
According to Turan, the response was not substantive, because an internal investigation was not conducted after the fact. This evasion, the same formal approach to the problem does not honor the organization obliged to defend the rights of consumers.
The agency's request was responded by the head of the Society of Free Consumers
Eyyub Huseynov . According to him, the position of import of not only food , but the local market as a whole, except for a few types of goods, is monopolized that affects the retail price of the product , often several times higher than the price at the exit of the customs terminal.
The legislative framework is missing Antitrust Code, suggesting a mechanism of conflict between the final consumer and the business chain. However, he believes that the agreement signed by the President on January 16 decree " On additional measures in improving activities of agriculture and the food market " will serve the development of the segment. In particular, in the capital and other major cities will be created private "farmer" stores and "green" stores .
Huseynov believes that management will take real steps on anti-monopoly only after the country's accession to the World Trade Organization.
According to the deputy chairman of the public association Promoting Economic Initiatives, Rovshan Agayev, administrative decision of problems of the agricultural sector is a direct path to the dominance of officials. At the forefront of the development of the segment must stand peasants and land in its real ownership. In addition, the Milli Majlis shall accelerate the adoption of the third reading of the bill "On cooperation " and the government should develop the concept of incentive associations of small farms on a cooperative basis. Intervention of major entities in the process of unification is unacceptable and this should be reflected in the concept.
For real antitrust the Ministry of Economy and Industry must support small and medium-sized farms , as well as adopt sectoral programs , including salinity and land erosion control, said Agayev .
According to the founder of the Center for Economic Research Gubad Ibadoglu, the government is not interested in the fight against the dominance of monopolies. So, six years ago ( in 2008) the President approved the State Program "On ensuring safe food products to the population in 2015 ." Many of formally defined objectives ( food security through increasing crop production and livestock production , as well as to increase export potential ) have not been resolved. There are also good reasons not to trust the decree signed by Ilham Aliyev on January 16 "On additional measures in improving activities of agriculture and the food market ." - 17D-
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