“Thank you to specific retail chains for taking concrete steps toward lowering product prices,” Prime Minister Irakli Kobakhidze said in a comment to journalists.

Speaking about the findings of the price regulation parliamentary commission and the so-called “household basket,” the Prime Minister noted that the commission identified structural problems which, if addressed, would shorten the supply chain and directly lead to lower prices.

“Thank you to specific retail chains for taking concrete steps toward lowering product prices, which is very important. As for the medium-term perspective, the parliamentary commission identified structural problems which, if resolved, will shorten the supply chain and directly lead to lower prices. This will require work in the medium-term perspective, and it will also bring results, and we will actively work on it,” said Irakli Kobakhidze.

For context, the parliamentary commission on price regulation concluded that the main issue lies in market structure. According to the commission, the core problem is not excessive profit, but inefficient operational costs. The supply chain is considered long and inefficient. Therefore, it recommends creating centralized distribution centers that would bring producers closer to retail chains, as well as importers closer to producers.

The commission also advises the executive government to apply “soft intervention” rather than aggressive price control or price administration, arguing that strict regulation could create more problems than benefits.

Meanwhile, member companies of the Retail Association have begun identifying products within the so-called “household basket,” on which special pricing policies will apply, aiming — according to them — to ensure ongoing special offers on selected goods as part of their social responsibility commitments.