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Competition Agency May Launch Probe Into Agrochemicals Market Over High Markups and Dominance Risks

გიორგი ქედელიძე

The Competition and Consumer Agency of Georgia does not rule out launching a formal investigation into the agrochemicals and pesticides market after completing its monitoring process. The agency has already published an interim report, which highlights dominant market positions, high price markups, and possible conflicts of interest.

According to the report, between 2022 and 2025 there were 75 cases in agrochemicals and 86 cases in pesticides where the price markup from import level to retail level exceeded 100%, excluding operating costs and taxes. The agency notes that such figures raise concerns about pricing practices in the sector.

The head of the agency’s Strategic Markets Monitoring Department, Giorgi Kedelidze, told BMG that in some segments individual companies control more than 40% of the market, which may indicate a dominant position. If such companies are selling products with excessively high markups, there may be risks of abuse of dominance, which only a full investigation can confirm or dismiss.

The report also highlights potential conflicts of interest at the retail level, where the same companies both sell agrochemicals and provide advisory services to farmers. The agency explains that this may lead to biased recommendations favoring certain products. The monitoring covers 2022–2025 due to a three-year statute of limitations, and the final report will include recommendations and determine whether a full investigation should begin.

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