In Russia, they want to fix prices for socially important goods

In Russia, prices for a number of socially significant goods can be fixed when direct long-term contracts are concluded between manufacturers and retail chains. The Ministry of Agriculture invited the Ministry of Industry and Trade to send its position on making appropriate changes to the legislation. This follows from the minutes of the ministry's meeting with retail chains and industry communities (Izvestia has it).

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The cost will also be determined for socially significant goods.

According to the document, the share of long—term contracts, for example, in the supply of chicken eggs is 70-80%, vegetables - 50-60%. However, as some participants of the meeting noted, these percentages are not permanent and may decrease.

At the same time, as the Ministry of Agriculture reported earlier, it is the volume of these long-term contracts that plays an important role in stabilizing food prices in Russia, as well as maintaining the profitability of the agricultural sector. For example, as Izvestia wrote, a sharp drop in the cost of eggs this year led to farmers starting to destroy laying hens. The situation is different with the cost of carrots and beets. These vegetables have become leaders in price increases since the beginning of the year — by 39% and 57.8%, respectively, according to Rosstat data as of July 21.

"The use of long-term contracts with formula pricing that takes into account the interests of both manufacturers and retail chains will reduce market volatility. Currently, the possibility of consolidating this mechanism at the legislative level is being considered. It is assumed that the list of goods will be determined by the government. At the same time, the Ministry of Agriculture, together with the Ministry of Industry and Trade and the Federal Antimonopoly Service, will monitor the formation of prices in such contracts," the ministry's press service explained to Izvestia, noting that manufacturers supported this initiative.

A source in the ministry told Izvestia that it was about fixing prices for socially important goods, including eggs and vegetables.

Read more in the exclusive Izvestia article:

Bargaining is not appropriate: the authorities will fix prices for socially important goods