Imports getting more expensive, companies  should keep local product prices due to the people’s  low purchasing power

Imports getting more expensive, companies should keep local product prices due to the people’s low purchasing power

access_time2020-10-08 16:09:05


 

The devaluation of the national currency and the financial crisis have increased the prices of imported goods. As a result of losses caused by the pandemic, business faces new challenges such as a rise in import prices, which reduces demand and hits the importers’ revenues.

 

Nutsa Abramishvili, director general of Schuchmann Wines Georgia sees  the only option in  increasing  local production and reducing import dependence.


 

“We should focus on  producing more local products and reducing the country’s  dependence on imports as dependence on imports always boosts  price hikes and inflation. Due to a much lower purchasing power of the local population compared to foreign tourists, our company  does not increase prices, ”she explains.

 

“Not only importers, but also local producers must  reduce dependence on foreign supplies. Our  company uses both local and imported raw materials that increases  the cost of production as we still  depend  on imports, " Revaz Vashakidze,  Director of the company, notes.

 

He adds that despite the rise in prices and the lari devaluation, the company does not plan to increase prices given a low purchasing power of the population.


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