PSD Minister of Agriculture, Florin Barbu, proposes a new intervention in the food market: limiting the commercial markup on all agri-food products to 20% for a period of six months.
The measure is expected to come into effect after the current cap on basic foodstuffs expires (March 31), according to statements made on Monday.
He argues that there is already a draft legislative act and is calling for its swift adoption by the Government.
Barbu's Argument: Prices Have Dropped by Up to 33%
The Minister cites the effects of the current capping and states that official data shows a significant reduction in prices.
"Starting March 31, the commercial markup cap on basic foodstuffs will expire. We have had discussions in the Government. I have tried to convince with data, as I have always done, of the impact it can have on Romanians and Romanian consumers.
I have shown with clear data, including official data presented by the Competition Council, that prices in Romania have decreased, for basic foodstuffs, by percentages ranging from 15 to 33%," stated the Minister of Agriculture.
"Do You Think Someone Will Die?" – Call for Extending the Measure
Barbu insisted that state intervention is necessary in the current economic context and questioned criticisms of the capping.
"I want to say some very important things too. And I asked this question in the Government. Do you think someone will die if for six months we intervene with concrete measures for Romanians and Romanian processors?
Do you think someone will die if we intervene, in this difficult geopolitical context, to regulate the market in Romania?
Do you think someone will die if the commercial markup on basic food products is no longer 100% and for a period of six months it is 20-30%?
Don't you think it's time to make these crucial decisions for Romanians in a very tough period? Because I listened on TV too, and I paid attention, and it was said that we all have to suffer. But why should only Romanians, Romanian processors, and Romanian capital suffer and not the multinationals?" Barbu added.
How Would the 20% Net Profit Capping for Retail Work
The Minister argues that the 20% cap was calculated to cover all costs and leave a profit considered reasonable for retailers.
"Capping the commercial markup and the scheme proposed by the Social-Democrat Party does not affect any company in Romania. It does not affect any retail store in Romania. A 20% commercial markup has been calculated over all direct and indirect expenses, on the job sheet. 20% represents a net profit. Isn't it good for a retail store to have a net profit of 20%?" the Minister said.
He reiterated that such a measure would stabilize the market: "Let's put a net profit of 20% on all agri-food products for retail stores, for a period of six months. And I believe that at that moment, the market in Romania will be 100% regulated."
Finally, Barbu argued that, in the current context, Romania can adopt such measures without prior notification to the European Commission. He added that similar interventions could target not only food, but also fuels, energy, or gases used in industry and agriculture.