The new "Limited Prices" campaign began in mid-November and limited margins to 49 products, which is fewer than during the previous government measures of the same name, which included 73 items, but the response from large and small Podgorica supermarkets is now much better. The exception was some dairy products, which did not have the labels of the new government campaign.
This is the conclusion of research for which "Vijesti" visited the largest and smallest retail chains on the outskirts and in the city center in recent days.
The Ministry of Economic Development confirmed to "Vijesti" that the new measures were made in agreement with traders and are therefore being respected, and they said that during 18 market inspections, the Market Inspection did not record any irregularities or impose fines, while their data and that of the Statistical Office of Montenegro - Monstat - indicate that the measures have slowed down the growth of prices of the covered items.
The new campaign "Limited Prices" will last until the end of March next year, and through it, according to the list of items published in the Official Gazette, margins are limited for a total of 49 products. Margins on flour, sugar, oil, salt and fresh domestic cow's milk in bags are limited to five percent in wholesale and seven percent in retail, while for 29 food items and 14 items of personal and children's chemistry, margins in all facilities are limited to 15 percent. The margin is the difference between the purchase and selling price of the goods.
State measures also limit the selling price of a ton of pellets, so producers can charge a maximum of 250 euros for them and retailers 279 euros.
"Vijesti" visited the markets to determine whether retailers are adhering to the new measures and whether groceries are properly labeled. Unlike the previous campaign of the same name, which lasted from September last year to the end of April this year, when some products were not included in the campaign for months, this time the items on the shelves of larger and smaller stores were properly labeled, both in the food and chemical sectors.
In the previous campaign, the list of products included several types of meat, fish, fruit, vegetables and dairy products, while the new measures mostly apply to domestically produced items. Unlike before, the current campaign does not include fruit and vegetables. At that time, the margins on flour, sugar and oil were the same as today, but the margins on other food products were limited to ten percent in retail and wholesale stores. The margins on chemicals in retail stores were limited to 10 percent, and in wholesale stores to 15 percent.
Measures are the result of compromise
The Ministry of Economic Development told "Vijesti" that the "Limited Prices" are being implemented based on the Decision on Temporary Measures for Limiting Prices of Products of Special Importance for Human Life and Health, which has been in force since November 14 this year. They emphasized that the new action is the result of dialogue and a compromise reached between the Ministry and the economy, with the aim of protecting the living standards of citizens while preserving market stability and orderly supply, in conditions of increased inflationary pressures.
When asked why the action was being respected more this time, they said that the Decision was agreed upon through discussions with representatives of the economy, which contributed to better implementation in practice. They also pointed out that the preparation of the measures took several weeks, in order to find a sustainable solution, protect consumers and enable the smooth functioning of the market.
"Although a longer period of time is needed for the final assessment of the effects, the first indicators, combined with MONSTAT data, indicate a slowdown in price growth and stabilization in the product groups covered by the measure, which have a significant share in the household consumer basket. According to the Market Inspectorate, 18 inspections have been carried out since the decision came into force, with no irregularities identified, nor were any fines imposed. This confirms that traders, in most cases, respect the agreement reached and the prescribed obligations. The decision is based on: an analysis of price movements and inflationary pressures according to MONSTAT data, the structure and importance of products in the consumer basket, the experience of previous measures and their effects. The analyses have shown that limiting margins, in agreement with the economy, is the most efficient and least invasive mechanism for mitigating the rise in prices of basic products in the current market conditions," they said.
From the Ministry he leads Nick Djelosaj They also emphasized that fruits and vegetables are not included in this campaign because they have pronounced seasonal and daily price fluctuations, which they claim is confirmed by MONSTAT data, and that their price is also affected by the high VAT rate, which limits the scope of these measures.
They pointed out that in such conditions, administrative margin restrictions would not have the desired effect of reducing retail prices, but could lead to supply disruptions, so they support initiatives to reduce the VAT rate on fruit and vegetables. They added that this is already the practice of a number of European countries, precisely in order to make basic foodstuffs more accessible to citizens and reduce their prices in the long term.
All domestic products on sale
The Government adopted the decision to continue the "Limited Prices" campaign in early November, after which the Deputy Prime Minister and Minister of Economic Development Nick Djelosaj He said that in terms of weight and packaging, the campaign will apply to 800 to 900 items in stores.
He announced that these items will be specially marked and have information about the previous price.
"All domestic products, what we have in food production, will be on sale," said Đeljošaj.
Minister of Agriculture Vladimir Jokovic He then said that they had also included limiting the price of pellets in the campaign, because they are now 350 to 370 euros per cubic meter, which is significantly higher than in the region.
"Wood processors export 80 percent of the pellets they produce. If this measure results in there being no pellets for domestic consumers, we will make a decision to ban exports, so I urge them not to calculate. In recent months, there has been no increase in the price of any input in production, and the only reason for the increase in pellet prices is that it is the season and there is increased interest in what producers use," said Joković.
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