No Monopoly in Azerbaijan’s Grain Market: Head of Anti-Monopoly Service

Business Materials 13 February 2008 19:29 (UTC +04:00)
No Monopoly in   Azerbaijan’s Grain Market: Head of Anti-Monopoly Service

Azerbaijan, Baku, 13 February /corr. Trend I.Khalilova / The price increase for the grain products in Azerbaijan does not testify the existence of monopoly and cartel agreements in the Country, said the Head of State Anti-Monopoly Service of Azerbaijan's Ministry of Economic Development, Samir Dadashov.

"We spoke with all participants of the grain market in Azerbaijan and a meeting took place recently. Unambiguously, I can say that the monopolism and control of market by a group of persons cannot be taken as the topic of discussion. I can say that with full responsibility," Dadashov said.

According to him, an elementary indicator of it is that currently the grain in Azerbaijan is more expensive than those in Russia and Kazakhstan, but the cost of flour is cheaper. It means presence of more competitive market for the grain processing in Azerbaijan.

According to him, the situation in the grain market of Azerbaijan is the far reflection of the world processes - increase in the oil prices due to the increase in price of the power-consuming products. In addition, the increase in price of grain took place due to the use of energy as alternative energy source, replacing hydrocarbons with organic raw material, and the use of sugar as bio-fuel.

"All these bring to serious increase of demand for the grain and it causes price rise," Dadashov said.

Azerbaijan's demand for grain makes up 1.5mln tons. Due to the increase in price of grain in Kazakhstan and Russia, the Government of Azerbaijan last year cancelled VAT for the imported grain. It enabled to save $50 from each tons of grain.

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