REAL Movement Made Proposal Regarding Situation in Food Market

The attacks against the small and medium enterprises (SMEs) under the guise of fighting "with an artificial increase of prices and speculators" is not nothing but a shifting of responsibility for the social consequences of the devaluation of the national currency from the shoulders of the government to business. It is said in a statement released by the Movement Republican Alternative (REAL).

The document notes that tightening control over SME and interfering in its affairs government apparently intends to offset the negative effects of devaluation on the economy, as well as the loss of the poor at the expense of entrepreneurs.

"In the context of the operation of the laws of the market economy, the availability of healthy competition and an effective judicial system, there cannot be an artificial increase in prices. Otherwise, business entities, admit it, lose in competition, and may be prosecuted to the full extent of the law. "Over the past year, global food prices have fallen by about 10%, while in Azerbaijan, where 50% of these products come from abroad, an increase was recorded in food prices by 1.5%. Guilty of this is not retail, but groups that hold a monopoly of imports of goods, as well as public authorities that have established conditions for their illegal actions, declares REAL.

Under these circumstances, as the document says, the priority of the government should be the complete elimination of the monopoly on the import of goods, creating the conditions for normal subjects of foreign economic activity over the business. Further, the government should reduce or temporarily exempt from import taxes those food products that are not produced in the country. This also applies to those goods, the need for which is mainly met by import. At the same time, the government should take into account the fact that part of the raw materials and semi-finished products for food production comes from the outside and the pressure on manufacturers may result in suspension of their activities or their use of low-quality and cheap raw materials.

REAL urges the government not to take administrative measures against SME, as this can only worsen the situation, and immediately enter the World Trade Organization. ----- 08D