Prices in Montenegro are high, and they can only be reduced through a systemic solution, with as little improvisation as possible. This was assessed at the roundtable "How to achieve lower prices in Montenegro" organized by CEZAP. The owners of retail chains explain why they cannot act on their own.
"If all stores, or retail chains, were to reduce prices by four percent, inflation would drop by one percent, and stores in Montenegro would go bankrupt. Maybe not in one year, but in two for sure. We would not have the opportunity to work with financial institutions," said the owner of Voli Trade, Dragan Bokan.
"The problem is not in Montenegro. It is outside Montenegro. The moment the war in Ukraine ends and the economic situation stabilizes, which should take 6 months, it will stabilize. And the expectations, the greed of large producers, will have to be reduced because they will lose the market competition with smaller producers," said Aroma owner Ljubomir Šćepanović.
The Ministry of Economy is working on the problem, but for now everything is on a long stick. They plan to open a public debate on the Draft Law on Commodity Reserves, which will affect the stabilization of the market and to some extent reduce prices. They have also formed a Coordination Body that will monitor market prices and propose new measures.
"We have considered quite a few ideas and topics. I expect that we will come up with concrete conclusions in the near future, which will greatly contribute to what we are all striving for," said Jasna Vujović from the Ministry of Economic Development.
The Ministry of Agriculture is proposing to producers the "producer organization" model, which works well in developed European countries.
"Where agricultural producers who are well organized gather together, and together put their products on the market," said Mirsad Spahić from the Ministry of Agriculture.
One of the two producers present at the meeting, the owner of the company Goranović, said that domestic production is a shock absorber for inflation and claims that Montenegrin meat and meat products are the cheapest in the region. He also demands VAT rates similar to those in the region.
"One of the conclusions is that the VAT rate on meat products and fruit and vegetables should be reduced to seven percent. We will automatically get 14 percent lower prices. Both fruit and vegetables and meat products have a huge share in the market of the average consumer," said the owner of the "Goranović" company, Đorđije Goranović.
Producers and traders believe that they must discuss price reductions with decision-makers, ministers of economic development, agriculture, finance, and even the prime minister.
"We can only use this roundtable to send a message to the regulator to organize a meeting and to help us from the economy, how to achieve lower prices, both purchase and retail," said the owner of the Voli company, Dragan Bokan.
Businessmen will soon have a new opportunity to talk to ministers in the Parliament. SD MP Boris Mugoša announced on the X network that his initiative for a parliamentary hearing on prices in retail chains has been accepted. He announced that all aspects of this problem will be discussed at the session.
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