Extending Price Cap for Essential Food Items in Romania Lasts Until End-September
The Romanian government has extended the commercial markup cap on basic foods until September 30, 2025, as per a draft emergency ordinance published by the Ministry of Agriculture and Rural Development (MADR) on June 26, 2023. This move aims to protect consumer purchasing power and ensure food security amid inflationary pressures.
According to the ordinance, the commercial markup cap for basic foods applies to the entire distribution chain, regardless of the number of distributors. However, it does not extend to the merchant's sales, which are subject to a separate maximum commercial markup of 20%. This maximum commercial markup for merchants includes the merchant's direct and indirect expenses.
The commercial markup cap for basic foods is set at a maximum of 5% of the purchase price, with operational expenses added. This cap does not apply to the merchant's rebates and discounts or operational expenses. The commercial markup of 20% for merchants will also incorporate rebates and discounts.
It's important to note that the commercial markup cap for basic foods does not affect the merchant's commercial markup, which remains at a maximum of 20%. The cumulative commercial markup applied throughout the entire distribution chain, regardless of the number of distributors, is a maximum of 5% of the purchase price, with operational expenses added.
The extension of the commercial markup cap for basic foods is part of Government Emergency Ordinance No. 67/2023, with subsequent amendments and additions. The draft emergency ordinance was reported by Digi24.
The extension of the commercial markup cap for basic foods is scheduled to end on September 30, 2025. This extension is based on Government Emergency Ordinance No. 67/2023, with subsequent amendments and additions.
This news is a positive step towards maintaining affordable food prices for consumers in Romania, providing a sense of stability during challenging economic times.
The extension of the commercial markup cap for basic foods is a significant move in the realm of general-news, as it aims to protect consumer purchasing power and maintain affordability in the industry. This step falls under Government Emergency Ordinance No. 67/2023, with subsequent amendments, and is expected to impact the financial aspect of business, particularly in the agriculture and food sectors. The cumulative commercial markup applied throughout the entire distribution chain is capped at 5% of the purchase price, a decision that may have implications for politics, as governments often manage economic stability during challenging economic times.
