Last week, the budget committee in parliament adopted the bills against high prices on second reading. These were among the first bills submitted by “Progressive Bulgaria“. They caused a lot of controversy.
Bogomil Nikolov, executive director of the “Active Consumers“ association, and Ivaylo Galabov, chairman of the poultry farmers' union, commented on the topic on the air of “Wake up”.
“Neither the measures of the government, nor the wishes of traders and producers affect the market. It is regulated by other mechanisms and this is clear to everyone. The cabinet's measures are not oriented in the right direction”, said Galabov.
Nikolov believes that the state may have decided that a price comparison application will help consumers navigate, which in turn will put pressure on the market. The expert pointed out that the state price portal actually publishes data for the previous day – “traders conscientiously submit them in the morning, and they are published on the portal at 00:00” Nikolov stressed that there is no explanation for this fact and that this is not a good practice.
Galabov believes that the adopted measures to control prices do not attract investors and the market does not become more competitive. For customers, this means higher prices, Nikolov believes.
Nikolov also said that long-term measures are needed to have more supply on the market in conditions of better competition. And prices will be a consequence of this – i.e. they will self-regulate.
Galubov expressed doubt that the state price platform is unlikely to influence the market.
Galubov is of the opinion that with regard to the “fair price” there is “total misunderstanding of the modern economy”. “”This fair value is more in the heads of the producers, apparently the administration is concerned. In fact, it is meant that each producer must form a cost price for the product and set a given price. But the market does not work like that – it is not interested in our cost price, the wishes of the trader, it is determined by demand, supply and world markets. If we cannot produce a competitive cost price and price, this is our problem”, the expert also believes. In his words, a universal cost cannot be set for a product, nor can quality.
Nikolov commented that for some products the prices are high, “because there is someone to buy them” and gave the example of the kozunats at Easter. He was categorical that the way to regulate prices is through competition and more supply.