GD Prime Minister Irakli Kobakhidze says food prices in Georgia remain significantly higher than in many European countries and has called on law enforcement agencies to investigate whether criminal activity is contributing to the unusually high markups.
In a video address on consumer prices, Kobakhidze said a comparison of identical international-brand products in Georgia and France revealed major price differences: sunflower oil is 34% more expensive in Georgia, pasta 97%, rice 180%, butter 30%, cheese 42%, and chocolate 47%. According to him, this gap stems from excessive markups by distribution companies and retail chains, averaging 86% from border to shelf.
Kobakhidze stated that Georgian supermarket chains operate with profit margins of 7–14%, far higher than the European average of about 2%, despite Europe’s higher operational costs. He added that distribution companies in Georgia also have unusually high profit margins, often 6–13.5%.
The Prime Minister warned that these practices push local producers to export their goods rather than sell them domestically, resulting in fewer Georgian products on Georgian shelves.
Kobakhidze said the government will work with distributors and retailers to lower consumer prices and is prepared to use international antimonopoly mechanisms if necessary. He also asked Parliament to set up a commission to study the issue.
The Prime Minister noted growing concerns about potential coordinated, cartel-like behavior among market players and said this requires deeper analysis.
