A parliamentary commission in Georgia tasked with examining prices of food, medicines and fuel has adopted its final report, recommending targeted and limited state intervention in the food market rather than aggressive regulatory measures.
The commission’s concluding session reviewed and approved the document, although representatives from the People’s Power party and members of the For Georgia did not support the final conclusions.
Commission’s chair, Shota Berekashvili, claimed that the recommendation is to avoid heavy-handed interference in a sector that accounts for approximately 21% of the country’s economy.
“The sector is very large, and any aggressive intervention could create systemic risks that would affect the broader economy. The approach should be targeted, precise and carefully designed,” Berekashvili said, adding that rapid or sweeping reforms could lead to market shocks and potentially increase prices rather than reduce them.
He noted that the commission expects the adjustment period to last between six and nine months, during which the system could gradually stabilize.
The report identifies structural issues within the food market as a key challenge. Based on the findings, inefficiencies in operational costs—rather than excessive profit margins—are a primary factor driving higher prices across the supply chain, from producers and importers to distributors and retail networks.
The commission also highlighted a lack of transparency in commercial relationships, the presence of unclear marketing and service fees, and limited access for small and medium-sized producers to inventory turnover data, which complicates business planning. Delays in payments across the supply chain were also identified as a significant issue, increasing financial pressure on smaller market participants.
Among its recommendations, the commission calls for the digitalization of the sector, standardization of payment practices, and improved access to working capital for small and medium-sized enterprises. It also suggests reducing or eliminating certain commercial costs for these producers to facilitate their entry into retail networks.
The report further proposes the development of a legislative framework to regulate relationships between market participants, drawing on the European Union’s directive on unfair trading practices as a model to ensure more transparent and balanced commercial relations.
Another recommendation includes the establishment of centralized distribution centers in different regions of Georgia to streamline supply chains, reduce intermediary layers, and lower costs. Berekashvili claimed that shorter supply chains and closer links between producers and retailers could improve efficiency and ultimately lead to better prices for consumers.
The temporary commission was established in early February 2026 and consisted of 14 members representing several political groups, including Georgian Dream, For Georgia, People’s Power and the European Socialists.
The initiative followed a statement by Prime Minister Irakli Kobakhidze in December 2025, in which he noted a significant gap between domestic and European food prices and called for a detailed investigation into the issue, including whether any violations could be identified in the activities of specific market actors.
The commission has now concluded its work, with its recommendations set to be forwarded to the executive branch for further consideration and potential policy action.
