The Serbian government decided today to limit the prices of basic groceries such as sugar, flour type Т- 400, edible sunflower oil, pork leg and UHT milk with 2.8% of milk fat, and revert their prices to the ones from November 15, 2021.
The capping of the prices will remove the negative economic consequences of the pandemic and prevent market disturbances. The price capping doesn’t apply to groceries which prices have already been reduced (those on sale, seasonal discounts or promotional sales) but to the regular prices, i.e. the ones before discounts.
The decision, which will be valid for 60 days, stipulates that producers must not deliver these products in quantities lower than the average for the past 12 months. In case of violation of these provisions, fines ranging from 100,000 to 2,000,000 dinars will be applied, as well as the prohibition of a supplier’s business activity in the duration from six months to one year, the Government of Serbia has said.
The minister of Trade, Tourism and Telecommunications of Serbia, Tatjana Matic, has said that, if necessary, the government would extend the measure after the expiration of the 60-day period.
The minister added that the measure is aimed at maintaining the current living standard of the Serbian citizens, considering that, in the structure of daily consumption of groceries, the mentioned groceries have the biggest cost share.
The government’s decision comes after certain food producers announced higher prices despite the fact that the prices of basic groceries are currently at a ten-year high.
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