Moldova proposes to limit the trading margin of supermarket chains for borscht vegetables


Moldova proposes to limit the trading margin of supermarket chains for borscht vegetables

03/31/2020

Moldova has a decree restricting the trade margin on two groups of socially significant food products 10% and 20%, but vegetables do not belong to any of these groups

In the Republic of Moldova, a number of politicians periodically voice the idea of ​​limiting the size of supermarket margins in the retail price of potatoes, onions, cabbage, garlic and beets to a compromise of 15%. The proposal was issued in the form of an official letter to the Cabinet two weeks ago – shortly after the decision of the emergency commission to suspend the activity of wholesale and retail agri-food markets. Since then, the assortment of fruit and vegetable departments of many supermarket chains has declined; the prices of individual commodity items have increased by tens of percent.

Moreover, the authors of the “restrictive initiative” argue that the difference between the declared wholesale prices of some imported vegetables and the retail prices of these products in some cases is hundreds of percent. And, taking into account the factors of seasonal rise in price, rush demand and limited opportunities for shopping in the conditions of emergency, there is every reason to expect a further increase in prices for seasonal fruits and vegetables.

Now in Moldova there is a government decree restricting the trade margin on two groups of socially significant food products of 10% and 20%. Vegetables do not belong to any of these groups. This omission may well be eliminated by a complementary government decree.

Read also: Moldova: closing fruit and vegetable markets will require maximum social responsibility from markets of all formats

The authors of the initiative believe that a shorter and faster way is possible – the decision of the emergency commission, which will be valid during the emergency. Moreover, the 5% limit would be a reasonable compromise: such a margin on products of “borsh set” in retail does not hit too hard for socially vulnerable categories of the population, but also takes into account the growing costs of importing and selling vegetables. Monitoring the implementation of this decision may be entrusted to the tax office.

Retailers-networkers to the idea of ​​introducing temporary restrictions on the trade margins on fruits and vegetables assortment are negative. They argue their position, again, with the seasonal decline in supply by partner foreign and domestic suppliers of products, especially vegetables, as well as additional “quarantine” problems in the process of transportation / logistics of goods. At the same time, supermarket chains, especially including a large number of outlets, are not able (and often do not try) to temporarily expand the circle of suppliers of fruit and vegetable products at the expense of local small-scale farmers.

Eastfruit

Key news and analysis of the fruit and vegetable market on Facebook and Telegram East-Fruit.com

Subscribe!

Using the materials of the site is free if there is a direct, open to search engines, hyperlink to a specific publication of the analytical platform East-fruit.com.






->

.