The Minister of Agriculture excludes intervention in prices, as Yolanda Díaz has emphasized once again by removing an article of the Commerce Act that allows this initiative
Agriculture Minister Luis Planas has spoken out in defense of the food distribution sector a day after meeting with the Price Chain Observatory to tackle basket inflation, in a meeting that ended without proposing new measures to reduce the escalation in stores. Planas has responded to some United We Can ministers’ criticism of distribution by insisting that supermarkets “don’t make money” in this regard.
Planas blames ‘purple’ for the ‘thick qualifications’ he pours out on the companies in the sector and their managers. “It’s a matter of valuation,” he said, analyzing the realities of prices. “Competition in Spain is very strong and citizens decide, just like in elections, with a ballot, here they do it with a proof of purchase,” he said. The minister explained that consumers have the option of choosing between different shops if they are not satisfied with the prices of their usual shop. “Anyone who is not satisfied should go to another store or supermarket,” he said.
In addition, the head of Agriculture has acknowledged that he also dislikes the statements of Podemos, which is suing the companies and managers of the sector that he yesterday described as “looters”. “It is unfair and unnecessary. Using thick qualifications from there that do not coincide with reality, I personally do not agree with that,” he emphasized.
The overrun of declarations between the two government partners over the shopping basket has been upheld, just 24 hours after a meeting convened to determine what actions to take in the future following the VAT reduction of some of the food, effective from January 1. Second Vice President and Secretary of Labor Yolanda Díaz has withdrawn from the BOE (Official State Gazette) to indirectly remind Planas that the law establishes the possibility of intermediate prices. In concrete terms, this is done in Article 13 of the Retail Act, which states: «The State (…) may set prices or margins (…) for essential products or energy raw materials.
However, Minister Planas has made it clear on several occasions that he does not wish to undertake any form of intervention on this point. “If a cap is placed at the end of the food chain, you achieve that all links, both industry, but especially farmers, ranchers and fishermen, are the ones who are going to pay the price, they will pay for that reduction, that’s why the Law of the Food Chain a step forward,” he explained. “Setting up a basic food basket does not seem to me a model for an EU country, but another thing is that a shop or supermarket can prepare offers for the consumer, which, as long as it respects the law, seems more logical to me.” “, has indicated.
Planas has insisted that you should be “patient” when looking at the measures that have been taken, such as the VAT reduction. And he rules out a reduction in this tax on meat and fish. “There are not 100 solutions. We saw which products were consumed the most and which had increased in price the most from October to December and it was decided to reduce VAT on products that already had the reduced rate of 4% and, in addition, the 10% drop to 5% VAT on oils, including olive oil, and pasta,” he explained.
Planas recalled that yesterday at the Food Chain Observatory meeting, he asked the entire chain to reflect the cost reduction that would already be taking place in consumer prices. “I received positive reactions from everyone, but it is clear that inflation is rising rapidly, but falling slowly,” he stressed.
Waiting for the CPI for February
But for now there will be no more moves by the government. There is not even a new meeting with the food sector on the agenda in a few weeks. “The Observatory meets regularly, but the ministry has not yet summoned us for a new call, it has told us that it will if a new circumstance arises that requires a new meeting,” confirmed Ignacio García-Magarzo, president of Asedas, the employers association of supermarkets.
This whole situation has outraged consumers. Association Facua gave a press conference on Tuesday in which it regretted that Minister Planas “chose to join the interests of large companies that inflate their margins”. His spokesman Rubén Sánchez was firm: “It is a joke that Planas announced again that he will follow the evolution of prices.” According to their analysis, food chains have continued to rise despite the VAT cut, even resorting to the CNMC to sue eight major supermarkets.
Faced with the socialist minister’s ‘good’ speech to manufacturers and distribution chains, data from the organization shows that nearly one in five food items has increased its prices compared to those at the end of December, after discounting the VAT cut . » Facua recalled.
Source: La Verdad
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
