Identifier
Created
Classification
Origin
08ASHGABAT1234
2008-09-16 12:11:00
UNCLASSIFIED//FOR OFFICIAL USE ONLY
Embassy Ashgabat
Cable title:  

TURKMENISTAN: IMPORTED FOOD PRICES DOWN

Tags:  PGOV EAGR ECON ETRD TX 
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RUEHVEN/USMISSION USOSCE 2895
UNCLAS ASHGABAT 001234 

SENSITIVE
SIPDIS

STATE FOR SCA/CEN
ANKARA FOR AGRICULTURAL ATTACH

E.O. 12958: N/A
TAGS: PGOV EAGR ECON ETRD TX
SUBJECT: TURKMENISTAN: IMPORTED FOOD PRICES DOWN

UNCLAS ASHGABAT 001234

SENSITIVE
SIPDIS

STATE FOR SCA/CEN
ANKARA FOR AGRICULTURAL ATTACH

E.O. 12958: N/A
TAGS: PGOV EAGR ECON ETRD TX
SUBJECT: TURKMENISTAN: IMPORTED FOOD PRICES DOWN


1. (U) Sensitive but unclassified. Not for public Internet.


2. (SBU) SUMMARY: The Embassy's recent survey of food costs in
Ashgabat confirms that imported food prices have gone down about 19%
since a new customs law went into effect in August. Conversely,
prices of locally produced staples and other goods have steadily
increased in recent months. END SUMMARY.


3. (SBU) An EMBASSY LES who conducts regular checks of the cost of
basic food items in Ashgabat grocery stores and markets surveyed
prices during the week of September 8-12. In the survey, she noted
that the price of imported sugar, sunflower oil, flour and butter
had decreased by 25, 20, 19 and 8 percent, respectively. The
shopkeepers she spoke with all said that the decreases are a direct
result of new customs regulations, which removed customs fees and
quantity restrictions on the importation of all types of meat,
vegetable oil (excluding cotton seed oil),grain, butter, eggs, and
sugar. (NOTE: According to the new regulations, put into effect on
August 1st, importers of these food items now pay only a customs
formality charge equal to 0.2 percent of the cost of goods. END
NOTE.)


4. (SBU) In contrast, prices for locally produced food items have
remained steadily high, according to our survey, and some had
increased significantly - i.e. the price of eggs had increased by
50% and local rice by 25% - due to both increased production costs
and shortage of local produce caused by the recent drought.


5. (SBU) COMMENT: Consumers have reportedly welcomed the decreased
cost of imports and hope that the new customs regulation will
encourage more food imports and eventually bring about lower food
prices on the local market. Our local staff, however, are
pessimistic about the long-term benefits of the policy and believe
that it ultimately will benefit only food traders closely connected
to the government. END COMMENT.

CURRAN

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