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AgriMin Barbu: There is no cap on setting prices for farmers.
For farmers, there will be no cap on price setting and there will be no intervention "in any way" regarding the setting of market prices, Minister of Agriculture Florin-Ionut Barbu told a news briefing on Friday at the end of a government sitting, told Agerpres.
The Ciolacu cabinet has adopted an emergency ordinance freezing prices for basic foodstuffs.
"I want to make an important clarification: for farmers, there is no cap on the setting of prices, and there is no intervention in any way on the selling prices of farmers, producers of raw materials, since their profit margin is anyway small, considering the perishability of their raw materialS. The ordinance provides for a formula agreed upon with all the parties involved that halts for a period of three months the markups in the processing and marketing of some essential food products with the aim of reducing prices for them and with the implici tgoal of increasing the purchasing power of the population," said Barbu.
According to him, "the share of commercial markups charged by the processors can be a maximum of 20% over the production cost of the product calculated according to the accounting regulations in force, which include direct and indirect expenses."
The markup applied cumulatively on the entire distribution chain, regardless of the number of distributors in the chain, can be a maximum of 5% over the purchase price to which operational expenses are added, explained Barbu.
He added that the markup charged by retailers and Cash & Carry operators is capped at 20% over the purchase price, to which direct and indirect expenses are added.
The adopted measure, the minister said, will "protect the purchasing power of Romanians on low and medium incomes, who have been the hardest hit by inflation."
Moreover, Barbu went on to say that he is convinced that the emergency ordinance "will stop increases in prices and bring to the shelves a lower price for basic food for Romanians."
He announced checks in stores, saying that failing to apply the new regulations will be prosecuted.
