Nika Cherkezishvili: The egg price cut is an example of how a temporary price adjustment is packaged as an act of social responsibility

A 5% reduction in egg prices is a classic example of how a temporary price correction can be presented as an act of social responsibility, when in reality the price cut was announced in a market where prices had increased just a few weeks earlier. In other words, people were first made to pay more for the product, and are now being told it is becoming cheaper, writes Nika Cherkezishvili, a member of Lelo - Strong Georgia and a Tbilisi City Council deputy, on social media.

According to Cherkezishvili, eggs are becoming cheaper not because production costs have fallen, competition has increased, or efficiency has improved, but due to administrative pressure - and only to the extent that business profits remain safely protected.

He believes this scheme will be replicated in other sectors as well.

In his assessment, the government and companies benefit, while the public is misled.

“Friends, I want to address what may seem like a small issue at first glance, but in reality represents a major political-economic manipulation by Georgian Dream - the so-called reduction of increased prices, the next episode of which we saw today in the ‘price cut’ for eggs.

Many of you have likely seen the statement by member companies of the Poultry Development Association (Koda, Kumisi, Dila, and Savaneti) announcing a 5% reduction in egg prices.

This is a textbook example of how a temporary price adjustment can be framed as a social responsibility initiative, while in practice it has little to do with citizens’ real interests.

Let’s start with a basic fact: the price cut was announced in the same market where prices had already been increased a few weeks earlier. In other words, people were first charged more, and now they are told prices are being lowered.

This means consumers are not returning to the old price level, but to a slightly softened - yet still higher - reality.

Particularly noteworthy is the part of the statement where companies explicitly note that the decision was made in consideration of the Prime Minister’s initiative.

This raises an obvious question: if prices are reduced solely due to a political signal, why were they increased just weeks earlier under the same government and the same Prime Minister?

The companies also refer to risks related to profit margins. This is the most honest part of the statement. It clearly shows that the price reduction is not consumer-oriented. It is a carefully calculated step that allows the government to claim it is reducing prices while ensuring that company profits are not harmed.

Eggs are becoming cheaper not because costs have fallen, competition has increased, or production efficiency has improved, but solely due to administrative pressure - and only to the point where business profits remain secure.

The winners are the government and the companies. The losers are the people.

In short, this is a populist advertising message through which Georgian Dream is trying to present minimal change as a major achievement.

Just two days ago, the National Statistics Office published official data clearly showing that annual food inflation stands at 10.6%. Some products have become 15%, 20%, or even more expensive. Against this backdrop, reducing the price of an already inflated product by 5% is deception, political-economic manipulation, not an act of social responsibility.

I spent so much time on this issue because the same approach will be used elsewhere. This scheme will be replicated almost identically. We should not allow ourselves to be deceived and must recognize it from the very beginning.”

Member companies of the Poultry Development Association - Savaneti, Dila, Koda, and Kumisi - have announced a 5% reduction in egg prices. According to their statement, the decision was made in consideration of the Prime Minister’s initiative related to lowering food prices.

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