Markups on 14 food groups to be capped for three months

Markups on 14 food groups to be capped for three months

Markups on 14 groups of food products will be capped for three months from today under an emergency ordinance halting increases in prices for essential foods approved by the government on of June 30, 2023, told Agerpres.

The foods are: simple white bread; fresh cow's milk 1.5% fat, 1 liter; bulk cow's telemea cheese; plain cow's milk yogurt, fat 3.5%, maximum 200 grams; white wheat flour "000" 1 kg; coarse flour 1 kg; M caliber chicken eggs 10 pieces; sunflower oil 1 liter; fresh chicken meat (whole chicken, chicken cutlets, whole bone-in chicken legs, chicken wings); fresh pork (processed meat, pork leg with and without bone, pork loin); fresh vegetables in bulk (tomatoes, cucumbers, yellow onions, dried beans, carrots, bell peppers, kapia peppers); fresh fruit in bulk (red and golden apples, plums, watermelon, table grapes); fresh white potatoes in bulk; caster white sugar 1 kg.

The shelf price formation procedure for these products has to be uniform, both for the producers' private brand products and for the retailer's own brand products. The markups are charged on the value of the provided agricultural and food products exclusive of VAT.

Failure to comply with the provisions is a contravention, unless committed under such conditions that, under the criminal law, it is a criminal offence punishable by a fine of between RON 100,000 and RON 2,000,000.

Agriculture Minister Florin-Ionut Barb said on June 30, at a news briefing following a government meeting, that there will be no price-setting limit for farmers and there will be no intervention "in any way" in the setting of the market prices.

"Through legislation, we establish a formula agreed on with all parties involved that caps for three months the markups charged in the processing and marketing of essential food products with the aim of reducing prices for such categories of products and, implicitly, with the aim of increasing the purchasing power of the population," said the minister.

According to him, "the markup charged by the processors can be a maximum of 20% of 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% of the purchase price to which operational expenses are added, explained Barbu.

He added that the markup for retail and cash & carry should be of 20% of the purchase price to which direct and indirect expenses are added.