TBILISI, January 21 – Georgian Prime Minister Irakli Kobakhidze met with 15 representatives of major supermarket chains on Wednesday, putting rising grocery prices at the center of a growing government crackdown on retail markups.
Speaking after the meeting, Kobakhidze said everyday food items in Georgia cost significantly more than in parts of Europe. He pointed to what he described as an average markup of 86%, from import to retail shelf, and argued that the gap cannot be explained by costs alone.
The prime minister also highlighted rapid growth in the retail sector, noting that the number of supermarket outlets in Georgia has doubled over the past five years. He compared the number of stores per 100,000 people with figures from countries such as Germany and Austria.
Wednesday’s meeting was the second session of a special government commission tasked with examining prices for food, medicines and fuel. The commission held its first meeting on Tuesday, January 20, and plans further talks with producers, distributors and retail chains. The government says the process will run in parallel with a parliamentary inquiry and is expected to conclude by the end of April.
The current push began on December 24, when Kobakhidze released a video address comparing grocery prices in Georgia with those in France. He said items such as sunflower oil, pasta, rice, butter, cheese and chocolate were selling for more in Georgia, despite lower average incomes.
In that address, the prime minister said some supermarket chains operate with net profit margins of 7%, 8% and even 14%, compared with an average of about 2% in Europe, according to his statement. He urged law enforcement agencies to examine whether pricing practices point to possible criminal offenses and asked parliament to use its oversight powers to assess the situation.
Kobakhidze said existing practices raise suspicion that market players may be acting in a coordinated, cartel-like way, while stressing that further analysis is needed.
The initiative has quickly turned political.
Former president Mikheil Saakashvili reacted on December 24, saying that in a free and non-corrupt economy, chain stores aim to sell cheaper and increase volume, while cartel deals emerge “when the state is corrupt,” involving officials, importers and customs, according to Georgian media citing his social media post.
Other opposition figures have also questioned the government’s approach. Giorgi Sharashidze from the party Gakharia for Georgia said supermarket margins are only a small part of the problem and blamed what he called flawed government economic policy.
A United National Movement official, Vasil Urushadze, said unfair prices are ultimately the government’s responsibility and called it unserious to place the blame solely on importers, distributors and retail chains.
