Armenia’s industry must have priority status and work for export, Vazgen Safaryan, Chairman of the Union of Producers of Armenia told a press conference on August 26. He stressed the need for emphasis on export of finished products rather than raw materials.

Safaryan said that Armenia’s annual food imports exceed U.S. $500m. However, Armenia is able to produce most of them. Import is promoted in Armenia, but local producers must be supported instead, he said. “It is easier to import than produce, so more favorable conditions should be created for local producers than for importers,” Safaryan said. He pointed out monopolized market is a factor as well.

“Armenian laws prohibit importers from importing more than 33% of the total amount of a product item consumed in Armenia, but hardly anyone observes this restriction. Alex Group imports 95% of the sugar imported to the country,” he said.

Safaryan believes the Government must first of all interfere in the situation. “Our Government is hardly involved in the economic processes in the country and lets everything take its course,” the expert said. Safaryan also pointed out the need for using local resources.

“The Nairit plant stopped operating this March. The Armenian Government holds 10% of its shares. The pearlite-producing plant in Aragats has been inoperative for several years. Numerous examples can be cited. Pearlite is one example – countries import it from Turkey and Italy,” Safaryan said. He pointed out that the plants remain inoperative because of the former Government’s wrong steps.

“They sold them without thinking of the future – were the plants to operate or not,” Safaryan said.

A solution to the problem is a change in the Government’s monetary policy. “Instead of keeping the AMD exchange rate high, the Government should apply a fixed rate, about 450-500 AMD/U.S. $1 for exporters to feel freer,” Safaryan said.