June 30 (SeeNews) - Romania's government said on Friday it decided to cap markups on some basic food products charged by food processing companies, distributors, retailers and cash-and-carry stores for three months in a bid to rein in a surge in prices.
The capping of commercial markups under an emergency decree adopted by the cabinet applies to fourteen basic foods, including flour, bread, cow's milk, eggs, sunflower oil, chicken and pork meat, potatoes, tomatoes, and sugar, the government said in a press release.
The decree will become effective 30 days after its publication in the Official Gazette.
Food processing companies are limited to a 20% markup applied to the production cost. Distributors along the entire distribution chain are faced with a 5% markup limit, applied to purchase and operational costs. Retailers along with cash-and-carry stores are allowed to charge up to 20% on top of the purchase price as well as direct and indirect expenses.
The categories of products included in the decree are defined narrowly, with the cap on milk being applied only to milk with 1.5% fat content sold in one-litre bottles, or bread caps being limited to a loaf of white bread weighing between 300 and 500 grams.
The decree followed negotiations between the government and representatives of the Association of Large Retail Chains in Romania (AMRCR) and federations in the food processing industry, the agriculture ministry said in a separate press release.
Romania’s inflation rate slowed to 10.6% in May from 11.23% in April.