Is the consumer goods market monopolised?
By Messenger Staff
Tuesday, December 1In Georgia consumer goods are becoming expensive despite the fact that in the world market prices are fluctuating. The Georgian population has not much choice but to accept this. Despite hardship people cannot avoid buying goods of primary consumption and medications.
Some independent analysts think that this market is almost totally monopolised. At first glance there is big competition in the pharmaceutical market, as there are many different pharmacies around, but in reality the market is dominated by three major companies: Aversi, PSP and GPC. People complain that the prices of medicines are very high, but despite attempts by the Government to open up this market it is clear that an effective cartel has formed.
Analysts also state that food products are slowly increasing in price due to a similar monopolisation of the primary consumption market, and all this is happening against the background of a pretty high level of poverty in Georgia. According to official statistics 22% of the population lives below the poverty line but analysts challenge this and say the true figure is over 40%.