Milk and bread markup limitation will not have expected effect
Bill aimed to limit markup on socially important food products to 15% will have at least a neutral effect, believe Russian market experts.
For instance Aleksander Chernov, Executive Secretary of the Working Group on Agrarian Sector and Food Markets of the Russian Federation Public Chamber, finds it more effective to stimulate demand, for example by giving money or money equivalents to vulnerable categories of population. It is necessary to focus on marginality and competiveness in agrarian sector, not on production volumes.
Some experts also forecast processors’ pressure on producers of raw milk, as a result production of socially important products may be reduced. Processors are likely to shift additional costs to producers. By the way a lot will depend on this or that company’s opportunities, whether it will be able to balance losses by means of producing more expensive products or not.
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