April 14, 2024
How retailers are trying to convince the Government not to give GEO to reduce the prices of basic food

​​In the midst of negotiations regarding the price reduction mechanism for basic foods, the big retailers say that they have strictly followed 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 supermarketFoto: 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 have 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 could be attributed to us and that would create the perception that we would not have complied with the Voluntary Agreement in the form in which it was agreed.
  • In view of the above, the use of the justification that we would not have respected the Voluntary Agreement on milk, is one that has no coverage in reality and cannot be invoked as an argument to eliminate the option of a more extensive Voluntary Agreement for basic foods” , it is stated in a statement sent on Friday evening by the Association of Retailers.

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 after Prime Minister Ciolacu said that he wants an agreement by the end of the year to reduce the prices of basic foods, 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 Chains in Romania (AMRCR) reacted on Friday, stating that they support a voluntary agreement to reduce the prices of basic foodstuffs.

  • “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 pockets 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 the Government representatives have also shown.”, the retailers announced.

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 store chains to the proposal regarding the price reduction scheme for basic foods, namely a first list of the targeted products.

  • “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 their promptness and for this approach.
  • This means a guaranteed decrease in the price of some basic products from the range of those indispensable to the population, and here we mean bread, milk, cheeses, meat, eggs, flour, malai, oil, vegetables and fresh fruits.
  • I want to emphasize very clearly – it 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 ceiling.

  • “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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