Georgian Prime Minister Irakli Kobakhidze on Friday emphasised the importance of balancing business and public interests while addressing food prices during today’s session of the Government’s coordination commission, which was attended by representatives of distribution companies.

In his remarks, Kobakhidze noted that preliminary research was showing that the markup on food products in Georgia averaged 86%, a notably high figure.

“Preliminary research shows that a significant markup occurs from the border to the shelf, averaging 86%, which we consider quite high. For comparison, in Germany, the wholesale-to-shelf markup is between 20% and 30%, which is the standard. In this context, 86% is a substantial figure. Of this 86%, 44% is related to distribution, while the share in retail chains is relatively smaller. Overall, this results in prices in Georgia being much higher than in Europe. In some cases, prices are 50% higher, or even two to three times higher”, the PM said.

He added that while businesses acting independently have many positive aspects, the social factor is equally important.

“It is crucial to balance these interests and ensure that everyone works together to protect the public interest and, as far as possible, reduce prices”, he continued.

The Prime Minister highlighted that meetings like today’s allow the government to hear directly from the sector about perceived challenges and potential resources for reducing prices.

The session was attended by representatives from around 15 distribution companies, alongside the head of the Distributors’ Business Association.

Starting next week, similar meetings will be held with food producers, as well as discussions regarding pharmaceutical products and fuel prices.

In addition to food, the commission plans to study the markets for medicines and fuel. Earlier, on January 21, the coordination commission met with the heads of retail chains to explore ways to reduce high product prices.