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Romania extends the ceiling on the mark-up of basic food products

The mark-up ceiling was initially introduced in 2023 in the context of accelerated inflation growth

Снимка: БГНЕС/ EPA

The Romanian Parliament today approved a draft law to extend the measure for the ceiling on the trade allowance of basic food products until December 31, 2026, reported Digi 24 TV, quoted by BTA.

The draft law was approved by the Chamber of Deputies as the deciding body with 292 votes "for", one "against" and one abstention, after it was previously adopted by the Senate. The measure, which was due to expire at the end of June, concerns 17 categories of food products.

"The projected benefits of the entry into force and implementation of the measures included in this draft law aim to reduce or eliminate the probable and possible negative consequences caused by the current situation, as well as to preserve the balance of the agricultural products market in Romania and the viability of farms active in the crop and livestock sectors, as well as Romanian processors", the document states.

It specifies that the measure is temporary in nature and applies only to economic operators registered in Romania.

Among the products covered by the measure are ordinary white bread (300-500 grams), 1 liter of fresh cow's milk with 1.5 percent fat content, white brined cheese made from cow's milk per kilogram, ordinary cow's yogurt with 3.5 percent fat content (with a weight of up to 200 grams), white wheat flour up to 1 kilogram, corn flour up to 1 kilogram, chicken eggs size M, sunflower oil up to 2 liters, fresh chicken and pork, fresh vegetables per kilogram (tomatoes, onions, cucumbers, ripe beans, carrots, peppers, garlic), fresh fruits per kilogram (red and yellow apples, plums, pears, dessert grapes), potatoes per kilogram, butter, cream, white sugar up to 1 kilogram, molasses.

The surcharge ceiling was initially introduced in 2023 in the context of the accelerated growth of inflation and the rise in the price of food products, the television reminds.

Interim Minister of Agriculture Tancosh Barna stated that the measure should remain in force as long as inflation continues to put pressure on family budgets.

The annual The inflation rate in Romania in April was 10.7 percent according to the National Institute of Statistics, and according to Eurostat, the annual inflation rate in Romania in April was 9.5 percent, which is the highest level in the European Union.

At the same time, representatives of traders and farmers have repeatedly criticized the extension of the ceiling for the markup, claiming that the measure distorts the market and puts pressure on producers, notes Digi 24.

According to Feliciu Paraskiv, vice president of the National Association of Small and Medium-Sized Traders in Romania, the measure has led to an increase in the price of other products that are not included in the list, such as detergents, cosmetics, household products.

"They are all more expensive than they should be in order to somehow compensate for this ceiling," he said today in a television commentary.

For his part, Ionuc Lupu, a representative of farmers' association, warns that the pressure caused by the limit on the mark-up is transmitted throughout the entire economic chain and ultimately reaches the farmers.

"The farmer is in the most disadvantaged position in this chain and is the one who takes the hit from this regulation," he told Digi 24, pointing out that it is getting to the point where producers are selling milk at prices lower than production prices.