The list yesterday of food products whose prices maybe regulateds include wheat bread, rye bread, cow's milk, kefir, vegetable oil, butter, beef, pork, fowl, chicken eggs, salt,, sugar and tea.
Photo: Dmitry Lebedev
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Products Subject to Price Control Listed
The Russian Ministry of Economic Development and Trade released a list yesterday of food products whose prices maybe regulated by the state under a law on trade that is now being written. In addition to the “socially significant” items that have been under price controls since the beginning of the year, beef, pork and chicken were added to the list. The ministry claims that the controls will be applied only in “exceptional circumstances” and for no longer than half a year.
Article 6 of the law “On the Bases for the Regulation of Trade Activities in the Russian Federation” lists the foodstuffs subject to price control. Those include wheat bread, rye bread, cow's milk, kefir, vegetable oil, butter, beef, pork, fowl, chicken eggs, salt,, sugar and tea. The law has been distributed to the Ministries of Agriculture, Finance and Justice, the Federal Antimonopoly Service and other agencies for conciliation.
Price regulation of foodstuffs was first tried in October 2007. Those price controls were extended at the end of this January for another three months. Either the markup on the retail price or producer's price itself may be regulated under the law, although only dominant retailers – those who occupy over 15 percent of the market on the edge of cities or in municipal districts – are subject to the controls.
Although retailers point out that this latest version of article 6 is less restrictive than previous proposals (the Agriculture Ministry had proposed controlling the retail markups on all items). Certain problem areas are evident to them. Most of the tea produced in Russia – over 99 percent of it – is imported. If the producer's price of tea is regulated, it could cause wholesalers heavy losses. It is also unclear whether expensive cuts of meat and meat products are to be considered “socially significant.”
www.kommersant.com
All the Article in Russian as of Mar. 28, 2008
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