Why is the Pasta for Prisoners more Expensive?

This year the Penitentiary Department of the RA Ministry of Justice has signed a 346 million 600 thousand AMD contract with the “Support to Prisoners” Foundation for the supply of bread and pasta to the penitentiaries during this year.

According to the contract 1020 tons of bread and 40 tons of pasta will be supplied. The price for bread has been calculated as 324 AMD per kilo, while the price for pasta as 403 AMD per kilo. The price for bread is quite affordable, which is probably due to the fact that it is baked in the bakeries of the foundation. The Penitentiary Department of the Ministry of Justice informed Iravaban.net that the “Support to Prisoners” Foundation possesses 6 bakeries and 1 pasta production, which operate in the territories of the penitentiaries.

While, as for the cost of the pasta, the price is quite expensive considering the fact that the pasta of local or Russian production is available in the stores for the price of 380 AMD per kilo This means that the cost of the pasta is at least 20 AMD expensive and there is a overspending of about 800.000 AMD for its purchase.

In response to Iravaban.net’s question what explains the high price for pasta, the deputy Head of Penitentiary Department of the AR Ministry of Justice, Colonel of Justice N. Melkonyan answered:

“In any contracts signed between the Penitentiary Department of the RA Ministry of Justice and the “Support to Prisoners” Foundation, the costs for any goods are determined on mutual agreement of the parties and based on the study of the market price. The analyses of market price of pasta were done in December 2014 and January 2015, when the market price of pasta was high, which resulted in fixed price in the contract. However, later considering the lower market prices the contractual cost of 403 AMD per kilo was reviewed and the new price of 363 AMD per kilo of pasta was set.”

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However, in this case the question “why the calculations were done in December 2014 and January 2015” arises, and also why the prices for bread were not calculated higher as the bread is baked from the same flour which was more expensive then. If the prices for pasta were reviewed on that basis, why the price for bread was not reviewed then?

Another interesting circumstance is also the fact that the information on purchases from one person, which was available a few days ago has disappeared from the Government’s website on unclear reasons.