2023-06-23 17:16:00
In the midst of negotiations regarding the price reduction mechanism for basic foods, the big retailers say that they have strictly respected the voluntary agreement regarding the decrease in the shelf price of fresh Romanian milk and see no reason why this agreement should not be extended to food as well basic, instead of a normative act in this regard.
Milk in the supermarket Photo: Radub85 / Dreamstime.com
Large retailers: We all strictly followed the agreement so that the price of Romanian milk falls below 7 lei
The Association of Large Commercial Chains (AMRCR) recalled that in April a voluntary agreement was agreed – under the patronage of the Government – in which retailers, processors and farmers participated, by which it was agreed that the large commercial chains reduce by at least 10% the shelf price of the fresh Romanian milk product – of 1 liter – in such a way that it falls below 7 lei, starting from May 1, 2023, for a period of 6 months.
“All the members of AMRCR strictly respected the commitment assumed, this fact being certified in the weekly meetings of the Monitoring Group organized at the Ministry of Agriculture – led by the Minister of Agriculture in office at the time – and in which the Competition Council also participated. From this point of view, we consider that the members of AMRCR have shown seriousness and responsibility and we were not made aware that by complying with this Commitment we would have produced negative collateral effects that might be attributed to us and that would create the perception that we would not have complied with the Voluntary Agreement in the formula in which it was agreed. Considering the above, the use of the reasoning that we would not have respected the Voluntary Agreement from milk, is one that has no coverage in reality and cannot be invoked as an argument to eliminate the option of a Voluntary Agreement extended for staple foods”, it shows in a statement reported Friday evening by the Retailers Association.
Ciolacu says he will not hesitate to issue a normative act if an agreement is not reached by the end of the year
The big retailers reacted on Friday following Prime Minister Ciolacu said that wants an agreement by the end of the year for the reduction of basic food prices, but that, if necessary, he will issue a normative act.
“What I can tell you very clearly is that I want an agreement, which we can make by the end of the year, just like it was done in France, it’s no secret.
I would like less to come up with a normative act, but if this is imposed, be sure that we will also come up with the normative act”, said the head of the Executive.
Asked if the period will be six months with the possibility of extension, Marcel Ciolacu said: “It’s a very good start”.
Retailers will agree voluntarily, not GEO: It is absolutely necessary that the mechanism is applied not only to retailers, but to the entire product chain
The members of the Association of Large Retail Networks in Romania (AMRCR) reacted on Friday, stating that support a voluntary agreement to reduce the prices of basic foods.
“We insist on the idea of volunteering for the application of the price reduction mechanism and not by issuing a normative act, the large store chains proving seriousness in applying the voluntary milk price reduction scheme, an aspect certified by the Ministry of Agriculture and the Competition Council, which monitors permanently applying these discounts. Also, in order to produce visible effects in the pocket of Romanians and to accelerate the reduction of inflation, it is absolutely necessary that the voluntary mechanism is applied not only to traders, but to the entire product chain, as they have shown and the representatives of the Government”, announced the retailers.
List of products submitted by retailers / Minister of Economy: Romanian producers will not be obliged to limit their commercial addition
Prime Minister Marcel Ciolacu announced on Wednesday that he has already received a response from the large chain stores to the proposal regarding the basic food price reduction scheme, i.e. a first list of the products concerned.
“Thus, we have all the conditions to finalize an agreement or a normative act in the next period, and I would really like to thank them for the promptness and for this approach. This means a guaranteed price drop for some basic products from the range of those indispensable to the population and here we mean bread, milk, cheeses, meat, eggs, flour, oil, vegetables and fresh fruits. I want to emphasize very clearly – there will be a decrease that will not put pressure on Romanian producers.”, stated Ciolacu.
In the press briefing that followed the Government meeting, the Minister of Economy, Radu Oprea wanted to ensure that producers will not be affected by the price reduction mechanism, as happened with milk.
“I want to send a message to the producers. They will not be affected, this mechanism will not affect Romanian producers. We will have this mechanism finalized in a very short time, either by GEO or by agreement.”, said Minister Radu Oprea.
He said that the mechanism will not involve a price cap.
“We don’t intend to cap prices. It is not a question of a fixed price for a food, but of a limitation of the commercial addition in a comfort zone for those who produce, for those who sell and who distribute. It is a longer chain, but Romanian producers will not be affected.”, said Radu Oprea.
Asked if Romanian producers will be forced to limit their commercial addition, Oprea said no.
“If they will not be affected, it means that producers will not be forced to limit their commercial addition. It is a better formula and if the dialogue is working, why not come up with a better formula?“, Radu Oprea also declared.
Photo source: Dreamtime.com
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