Parliamentary commission urges ‘soft intervention’ in food, medicine and fuel prices

A temporary parliamentary commission in Georgia has begun reviewing its final report on the structure of pricing in key sectors, including food products, medicines and fuel.

Shota Berekashvili, the commission chair, on Friday said  the report was developed through joint efforts and is based on several key factors. He said the commission studied three major sectors and held meetings with 62 companies identified as principal market players, as well as industry associations. In addition, operational and financial data from a further 82 companies were analysed.

Berekashvili noted that over a three-month period the commission conducted field research, including price monitoring of food products between 28 February and 16 April.

He added that the findings also draw on the experience of several European countries, including Estonia, Latvia, Lithuania, Spain and Netherlands, with the aim of identifying approaches suited to Georgia’s economic context.

The commission’s recommendations to the executive authorities emphasise a “softer” form of intervention rather than aggressive market controls. Berekashvili warned that strict price regulation could create more problems than benefits.

The report outlines three main directions: a medium-term systemic transformation over six to nine months, based on European best practices and directives on unfair trade practices; and a longer-term strategy focused on shortening supply chains, supporting local production and developing private-label products.

The conclusions will be submitted to the executive authorities for further consideration and detailed implementation.