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Tobacco, pastry prices rise

2 April 2008 21:10 (UTC+04:00)
Tobacco, pastry prices rise
The prices for some consumer goods, particularly tobacco and sweets, surged in Azerbaijan in March.
A 20% increase was observed on imported tobacco products, while the cost of domestically-made cigarettes remains unchanged, sellers say.
Importers have said local companies had to raise the prices due to rising production costs abroad. The increasing rate of the Euro has also affected the market, as prices for cigarettes delivered from European states increase after being converted from Europe's single currency to the national currency, manat.
Domestic producers have pledged that no rises in the prices for locally-made cigarettes are in the offing.
The Agriculture Ministry says the decreasing volume of local goods could have affected prices as well. Imports of tobacco have risen 80% due to a fall in domestic production.
3.5 million cigarettes were produced in 2007, it said.
The prices for confectionery have grown 30% in the past month, mainly on account of imported pastry. The biggest increase was registered on prices for such products delivered from Russia and Ukraine, which have nearly doubled.
The prices for sweets began to rise since the eve of Novruz Bayrami, marked on March 20-22. Pastry is traditionally consumed a lot during its celebration.
Candy that used to cost 2.70 manats is now selling for 3 manats ($3.60). The prices for chocolate grew 20-25% on average, while those for cakes and biscuits - 15-20%. Wholesale prices increased as well, entrepreneurs said.
The State Anti-Monopoly Service has confirmed the rises on imported commodities. It said local producers had to take the step due to rising prices for sugar in world markets, and ruled out artificial price hikes.

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