TRUE OR NOT?!

During the 20th century there was not much doubt about the quality of products available in Azerbaijan's markets. This was not only due to tight control over production and imports but also due to a food industry which lagged behind and was based on artificial materials. However, with the liberalization of trade and economic relations, Azerbaijani consumers were introduced to such terms as genetically-modified goods and substandard production. All this necessitated a tightening of control over the domestic consumer market, but this was a daunting task amid a shortage of foodstuffs and the need to supply sufficient goods of any quality.

Today, given the emerging domestic production of high-quality food and the increasing purchasing power of citizens which allows them to buy high-quality imported goods, the public is growing weary of the substandard goods offered in the domestic market. The situation has unfortunately deteriorated, for the above-mentioned reasons, to the extent that the numerous government agencies authorized to oversee the sector are still unable to effect control. Nonetheless, the head of the State Service for Oversight of the Consumer Market within the Ministry of Economic Development, Khalyg Mammadov, has pledged that the sale of low-quality goods could be eliminated, at least in Baku, as early as by the end of the year.

Where do all problems come from? 

As we said earlier, several organizations are involved in monitoring Azerbaijan's consumer market, with many of them authorized to impose administrative penalties in case of violations. In this case, why do the problems remain unresolved? 

Arif Asrafov, head of administration at the State Agency for Standards, Metrology and Patents, says there is a need to coordinate the efforts of all these bodies. The chairman of the parliamentary commission on economic policy, Ziyad Samadzada, agrees and has suggested that a single body be set up to oversee the consumer market.

One of the crucial issues is also the improvement of the relevant legislation and the toughening of penalties for violations committed by producers and traders. Thus, fines in this field are currently 44 manats ($53) for individuals and 220 manats ($265) for businesses. The State Service for Oversight of the Consumer Market has imposed fines amounting to 145,000 manats (about $175,000) so far, which is an insignificant amount considering the numerous problems in quality of produce and services faced by Azerbaijani consumers on a daily basis. 

This being said, the Ministry of Economic Development intends to raise the issue of increasing fines for the production and sale of low-quality produce.

"We want the fines to rise enough to make producers feel accountable for the quality of goods they produce," Minister Heydar Babayev said. "The current fines are extremely low, and entrepreneurs prefer to pay them and keep on producing and selling substandard goods."

As for a legal framework in the consumer market field, one is already in place, but independent analysts maintain it does not always work.

Two more legal acts are currently in the making - the State Programme on Regulating Trade for 2008-2012 and the Law on Regulating Trade. Passing this legislation will allow us to talk about the rights, not only of consumers, but also of producers, as well as the owners of trade and public catering outlets.

Moreover, pundits see the need for improvement in the system of training staff employed in the field.

"For instance, the Higher Schools of Economics used to prepare commodity researchers [in Soviet times] who were engaged in inspecting the products being made. They are out of business nowadays, although they could facilitate the solution of many problems caused by the delivery of low-quality goods to the market," said commission chairman Samadzada.

But state bodies have said that applying this practice is impossible in a market economy. 

"We cannot have an inspector working at each enterprise, or set up a trade inspection of any kind. We believe that the situation can be resolved by enlightening local producers," Minister Babayev said.

'Environmentally-friendly' poison 

The most hazardous situation currently is that in the food industry, given that consumption of substandard food directly harms consumers' health. The adverse impact of a worldwide shortage of foodstuffs is also felt in Azerbaijan where genetically-modified goods are still put on sale and are even presented as environmentally-friendly. 

Deputy Minister of Agriculture, Ilham Quliyev, says that to compensate for the lack of produce, farmers use chemical fertilizers and genetically-modified crops, which yield a considerable harvest but which are detrimental to human health.

Another problem is counterfeit alcoholic drink sold in the domestic market. A taskforce has been set up under the Agriculture Ministry to track the production and sale of such products as well as of methyl alcohol, in accordance with the Cabinet of Ministers decrees dated February 12, 2005 and August 16, 2005.

Most problems are faced today with butter and sausage.

"A kilogramme of butter can't cost 1.90 manats (slightly over $2). This is not margarine. Consumers should be very careful in buying such goods. But the most alarming thing is the fact that such 'butter' is often delivered to kindergartens and school cafeterias," Xaliq Mammadov said.

He said the State Service for Oversight of the Consumer Market has achieved tangible results in improving the situation in the domestic consumer market over a year. However, problems remain. 

"For example, we have not succeeded yet in eliminating the street vending of pastries such as buns and patties. Consumers are still unaware of the origin of the meat and potato stuffing used in these products. We are not able to solve this problem on a nationwide scale in a very short time. However, consumers should help us by refraining from buying such goods," Mammadov said.

The government is also working to counter the sale of dairy products on the streets. 

"We have lately discovered a facility producing hand-made curds. After receiving our warning, its owner undertook an obligation in writing to discontinue this production," Mammadov said.

He stressed that combating such violations is not that easy. There are a great many small trade outlets in Baku which lack proper conditions for the storage and sale of goods. 

"When claims are levelled against the owners, they complain that we are axing jobs," Mammadov added. "But in any case, we have to solve the problem, and the Service has the task of completely eliminating the sale of low-quality food to domestic consumers. I believe we will accomplish this goal by the end of the year."

It will be quite easy to check whether or not this promise will be kept. It suffices to visit a local market…