The government has submitted for public discussion a new version of the law on the supply chain of agricultural products and food. The main change provides for a ceiling on mark-ups on basic food products – no more than 20% for large retail chains, up to 20% for processors compared to the production cost and a maximum of 10% for wholesalers.
The draft law will be discussed over the next two weeks with stakeholders. This is the second attempt to adopt it, after the first version was sharply criticized by employer organizations and industry associations.
„This law does not aim at lower prices. On the contrary – "the forecast is for price increases and limited choice," economist Petar Ganev from the Institute for Market Economics commented to BTV.
He warned that the ban on including logistics costs in markups, as well as the mandatory percentage of Bulgarian products in stores - 50% for food and 80% for dairy products - will lead to disruptions in trade and pressure on end consumers.
"The losers will be consumers and everyone along the chain - from producers to traders," Ganev also said.
According to him, there is a risk that the law will lead to a punitive procedure by the European Commission due to restrictions on the free market and requirements that may lead to sales below cost.
Despite criticism, the project is expected to be submitted to parliament in the fall.