BISNIS - NIS Agribusiness Report

08 MAY 95

FM AMEMBASSY ASHGABAT


ASHGABAT MARKET SURVEY: MAY, 1995


1. SUMMARY: STATE SHOPPING SURVEY. BREAD SUPPLY STILL DOESN'T MEET DEMAND. SHORTAGE OF DAIRY PRODUCTS IN STATE SHOPS. INCREASE OF PENSIONS FOR WAR VETERANS. TEKE BAZAAR MARKET SURVEY. FOREIGN EXCHANGE RATE. END SUMMARY.

STATE SHOPPING SURVEY

2. THIS STATE SHOPPING TRIP WAS MADE BY POST ON MAY 5TH, 1995, IN ASHGABAT. PRICES AND PRODUCT AVAILABILITY WERE SUBSTANTIALLY WITHOUT CHANGE SINCE APRIL. THE UPCOMING CELEBRATION OF THE VICTORY DAY (MAY 9) AND THE RELIGIOUS HOLIDAY KURBAN BAYRAM (MAY 10-12), ARE NOT BEING USED TO SUPPLY THE CAPITAL WITH SUCH STAPLES AS CHEESE, SAUSAGE, CHICKEN PARTS, ETC., AS WAS PREVIOUSLY DONE. PRICES IN MANATS STATE SHOP BUTTER (400 GR) 30 COOKING OIL (1 L) N/A FLOUR (1 KG) 1 RICE (1 KG) 15 SUGAR (1 KG) 25 MEAT (1 KG) 25 VODKA (0.5 LITER) 70 STATE GREEN GROCERIES POTATO (1 KG) N/A CABBAGE (1 KG) 18 BEET (1 KG) 15 ONION (1 KG) N/A CARROT (1 KG) N/A CUCUMBER (1 KG) 60 TOMATO (1 KG) N/A APPLE (1 KG) 65

3. LONG LINES OF THOSE WISHING TO BUY BREAD ARE STILL SEEN IN ASHGABAT. THESE LINES ARE WATCHED :ER BY MILITIA WHO HELP KEEP ORDER AND, TO SOME DEGREE, ENSURE FAIR BREAD DISTRIBUTION (TWO LOAVES OF BREAD PER PERSON PER DAY). ACCORDING TO LOCAL NEWSPAPERS, HIGH QUALITY FLOUR IS BEING RECEIVED NOW FROM KAZAHSTAN, UKRAINE, ENGLAND, SWEDEN. AS A RESULT, PEOPLE CAN BUY BREAD OF HIGHER QUALITY THAN THAT WHICH WAS BEING SOLD A MONTH AGO.

4. THERE IS A SHORTAGE OF DAIRY PRODUCTS IN STATE SHOPS THROUGHOUT TURKMENISTAN. PEOPLE STAND IN LINE FROM SIX O'CLOCK EVERY MORNING TO GET THEIR LIMITED PORTIONS OF SUBSIDIZED YOGURT, SOUR CREAM AND COTTAGE CHEESE. USUALLY, PENSIONERS AND MULTICHILDREN MOTHERS ARE SEEN IN THOSE LINES. PRIVATE MILK FARMERS SELL MILK AT 50 MANATS AND SOUR CREAM AT 100 MANATS PER LITER.

5. A PRESIDENTIAL DECREE WAS RECENTLY ISSUED GRANTING ADDITIONAL PRIVILEGES TO INVALIDS AND THE GREAT WAR PARTICIPANTS. THOSE PEOPLE WERE GRANTED A ONE-TIME PAYMENT FROM 1000 TO 3000 MANATS. THE SIZE OF THE MAXIMUM PENSION FOR INVALIDS AND VETERANS OF THE GREAT WAR WAS RAISED TO 5000 MANATS PER MONTH.

BAZAAR MARKET SURVEY

6. THE TEKE BAZAAR TRADING DISPLAYED NORMAL AVAILABILITY OF VARIOUS SPRING ITEMS: CUCUMBERS AND TOMATOES AT, RESPECTIVELY, 80 AND 250 MANATS PER KILO, NEW POTATOES AT 250 MANATS, SMALL MELONS AND WATER- MELOMS AT 100 AND 50 MANATS PER KILO, AND STRAWBERRIES AT 300 MANATS PER KILO. PRICES FOR STAPLES LIKE MEAT, EGGS, AND CHICKEN REMAIN AT THE LEVELS OF LAST MONTH BECAUSE OF OVERSUPPLY OF THESE ITEMS. BUT COOKING OIL, HIGH QUALITY KOREAN RICE, AND CARROTS ARE 30-50 PERCENT MORE EXPENSI-Q IN COMPARISON WITH LAST MONTH.

(PRICE IN MANAT)     MAR 1       APR 3      MAY 4
195 MANAT/1USD

PRODUCE MARKET
--------------
MEAT (1 KG OF        200         250        250
BEEF OR LAMB)
BUTTER (400GR,       350/400     300/350    350
RATE PER ONE KG)
SUNFLOWER OIL (LL)   280/300     280/300    360
CHICKEN (WHOLE)      500/600     500/700    800
EGGS (10)            120/140     130/150    140
RICE (1 KG)          35          40         40/100
POTATO (1 KG)        40/50       180        120/250
CARROT (1 KG)        30          50         100
CABBAGE (1 KG)       50          50         50
TOMATO (1 KG)        150         500        250
ONION (1 KG)         30          45         50
APPLES (1 KG)        75/150      100/150    120

STRAWBERRIES (1 KG)                         300

7. FOREIGN EXCHANGE RATE THE COMMERCIAL EXCHANGE RATE IS 195 MANATS PER ONE U.S. DOLLAR WHILE THE BLACK MARKET RATE HAS BEEN STABLE AT 220 MANATS PER DOLLAR FOR THE PAST MONTH.