Georgian Prime Minister Irakli Kobakhidze expressed concern that food prices in Georgian supermarkets are significantly higher than in Europe. A comparative analysis revealed significant differences in the prices of many goods.
According to Kobakhidze, the price difference between goods of the same brand in Georgia and Europe is very large. For example, pasta in Georgia is 97% more expensive, rice 180% more expensive, butter 30% more expensive, cheese 42% more expensive, and chocolate 47%. The net profit of chain stores in Georgia reaches 14%, compared to around 2% in Europe.
The Prime Minister blames the high markups of distributors and retail chains, as well as their rapid expansion. He does not rule out the possibility of a cartel agreement and intends to use antitrust measures and create a parliamentary commission to investigate the issue. Furthermore, the Ministry of Internal Affairs has been instructed to investigate possible signs of criminal activity related to the high prices.
"I urge law enforcement agencies to conduct an in-depth investigation of this issue and determine whether there are signs of criminal activity in the activities of specific individuals... Current practices raise suspicions that market participants may have acted in concert, based on a cartel principle, which naturally requires further analysis...," Kobakhidze shared.
