Food consumption has decreased by 30%, says the Minister of Agriculture. He wants a ceiling on the commercial addition, depending on inflation
Florin Barbu, Photo: Inquam Photos / George Calin
The Minister of Agriculture, Florin Barbu, says that the purchasing power of Romanians has decreased drastically, and food consumption has decreased by almost 30%, which makes the processing units reach losses. The minister announced that he will present, next week, a project by which the commercial surcharge will be capped at 20% for all food products if inflation is higher than 5%, as it is currently.
“Ever since August 1, I have always said that the purchasing power and the share of food in Romania has decreased and will decrease,” the Minister of Agriculture said on Sunday evening, on Antena 3, according to which food consumption decreased by “almost 30%”, News.ro quotes.
“Think about the repercussions that can be on the food industry. Because when these processing units do not achieve the necessary volumes, they run at a loss. Because they have a lot of employees, these large processing units do not stop, they work 24 hours a day, and when you do not have the necessary volumes… of course, these units run at a loss”, explained the Minister of Agriculture.
Florin Barbu announced that he will propose capping the commercial addition, depending on inflation.
“At the moment, I think inflation has reached somewhere around 10%. I have made a decision and next week I will present a package, so that all the economists and those who are good at economics will not accuse me of meddling in the market. I no longer intervene in the market. I intervene on inflation, with a very simple mechanism. Of course, it will be a normative act. When inflation is over 5%, there is a ceiling on the commercial addition, but for all agri-food products, not only to the basic ones, because that addition applied to the basic foods went to other agro-food products”, he declared.
Florin Barbu mentioned that even the Competition Council noticed increases in certain foods that were not included in the Basic Food Ordinance.
“If inflation is below 5%, the market remains free”, said the minister, specifying that he wants to cap the commercial addition at 20% only in case of high inflation.
