The government already addressed the issue of soaring food prices in the spring, when it instructed the Competition Council and other institutions to prepare proposals to reduce prices. These were insufficient, so the Ministry of Economics is now preparing to put on paper a wider range of measures. The aim is to achieve price reductions of up to 20% in the basic necessities group.
"For example, to set a ceiling on the markup for certain groups of goods. The second is to introduce control mechanisms, price comparison mechanisms, and digital tools that would help to control the volume of prices, also in the discount policy. This includes how the relationship between supermarkets and producers is organized, where producers are not in the best situation," explains Valainis.
"We stand out in terms of the costliness of prices, both in the Baltic States and more broadly. Somehow it has happened that a concentration of power has developed in supermarkets, an influence on both the producer and the consumer. We therefore believe that significant intervention is needed," the Minister stressed.
However, these ideas are currently only a proposal from the Ministry. The Latvian Traders Association believes that price regulation is not the right direction to go in. However, the association does not comment further.
The plan is due to be discussed at the Coalition Cooperation Council in a week's time. Then the wider public and the sectors involved will know the details of the plan. The Minister promises that, if there is political support, there will be extensive discussions with the sectors involved. The possible timeframe for the implementation of the plan is 7-8 months, coinciding with the forthcoming local elections.
