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Economics & Business News

The Ministry of Agriculture invited retailers to voluntarily limit the markup on products

The Ministry of Agriculture proposed to extend the practice of limiting trade margins in the amount of 5% by retailers not only for goods of their own brands, but also for other products. Writes about this "Kommersant".

The Ministry of Agriculture considered that retail chains make an extra charge only on their branded products, which account for no more than 20% of sales. Now officials want to limit markups on a number of basic products under brands popular with consumers, which account for more than 70% of sales. We are talking about milk, kefir, butter, cottage cheese and bread with a short shelf life.

At the same time, retailers were already preparing for the intervention of the authorities in pricing, so they independently decided to limit the margin on some types of bread, dairy products, sugar, onions, beets, carrots, and potatoes. Retail chains themselves have chosen the brands that are subject to the restriction. But, as it turned out, it happened on dairy products and bread under private labels (PL), which is already minimal.

Experts noted that price controls would lead to losses and could trigger the risk of shortages. In addition, it is best to provide targeted support to low-income citizens.

On February 9, it was reported that officials may ask transport companies not to raise tariffs for the transportation of products. The initiative is connected with the fact that the authorities are trying to strengthen control over the formation of prices for products throughout the chain.

The Ministry of Agriculture invited retailers to voluntarily limit the markup on products