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Importers Preparing to Raise Prices of Food Products

According to importers, if GEL continues depreciation, prices of products will increase by  5%.
Director General  of one of the largest importers of food products Lux 2004 states “Commersant” that prices of the imported products are  linked to the GEL rate. Guram Brodzeli explains  when the  exchange rate fluctuates rapidly, importers find themselves in deadlock.

In the businessman’s opinion, the central bank should intervene in the process to avoid instant fluctuations in the exchange rate. In his words,  so far prices of imported products have not grown up yet  but the price increase would be inevitable if the trend continues.

General Director of another company Sharm Trading Guram Sadzaglishvili says that at this stage importers maintain prices by reducing profit margins.

“Roughly, the current price level will last until the end of the year. But if the exchange rate is close to the mark of  1.9, then it will necessarily affect the value of the products. The rise in prices will be adequateto the depreciation of the currency,”- the businessman notes.

Other importers claim that if the exchange rate reaches the level of 1.9 , the prices of imported goodswill rise by 10%.