Consumer market of regions and main problems of its functioning (Summary)

Dali Khokhobashvili

It is necessary to arrange trade sphere along with other market principles-based branches, as situation in trade sphere can affect the country’s social and economic state.

In order to analyse trade problems, let us consider the state of retail trade in one of the regions of Georgia ? Kakheti.
After transition to market relations, quantitatively new structures have been formed in the consumer market of Georgia such as markets with industrial, food and miscellaneous production that have taken a priority place in this sphere. Fairs are result of unregulated trade development being its non-civilised form.
Kakheti comprises 8 administrative units.
Apart from fairs, retail trade network performs retail trade in the region. Barter takes place mainly in fairs where retail trade is not developed.
Twenty-three markets with food, industrial and miscellaneous production function in Kakheti region making up 9% (225). Some of them function 30 days a month, others 4 or sometimes 20 days.
Both local (produced in this and other regions) and imported production is sold in markets of the mentioned region. As we know, agriculture is developed well in Kakheti region. All regions of Kakheti specialises in agricultural direction. Viticulture is a leading branch of agriculture in all regions. Apart from local markets, it provides other regions of Georgia with production (grapes, wine and alcoholic drinks, fruit, vegetables, oil, grains, meat, diary production, water-melons, tobacco, etc.) and exports some products (mainly, wine and alcoholic drinks). This is regulated by regional Commerce and Industry House of Kakheti.
Production of Kakheti meets only half of population’s demands. Thus, markets are supplied with goods from Tbilisi. Afterwards goods are re-distributed in accordance with regional channels. Telavi and Gurjaani perform the function of wholesale market in the process. The regions provide Kvareli, Dedoplistskaro, Lagodekhi, Signagi and Akhmeta with goods brought from Tbilisi. Sagarajo does not perform this function as it is located far from other regions.
There are plenty of problems in the mentioned sphere. Falsified and non-excise goods are sold freely in market; bribed tax collectors and policemen in the market shut their eyes to the facts, which breaks consumer rights.
State should organise consumer market and improve trade and service culture by using legal and economic levers.