Romanian Producers, Retailers Agree On Good Practices Guide

Romanian producers and retailers on Thursday reached an agreement upon stipulations included in the Guide of Good Practices and said that will sign the document on July 2.


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Romanian Producers, Retailers Agree On Good Practices Guide

The Guide will come into force once it receives approval from the Competition Council, Agriculture Minister Dacian Ciolos said at the end of a meeting between producers and retailers.

Ciolos said the Guide will contribute to a higher transparency of prices paid by consumers.

Producers said the Guide’s major benefits are giving up certain taxes and setting a clear definition of the sale price.

The definition of the sale price means that a product will have one single list price (formed of the production cost and the producer’s margin of profit), but will reach different prices in supermarket chains, depending on the taxes imposed by them.

For example, if a product has a list price of RON10, it will cost RON12 in a supermarket that applies 20% taxes, but only RON11 in a supermarket applying lower taxes. This would bring retailers in competition and would make them interested in decreasing prices and taxes, in order to have the best price.

Talks on the guide came after producers claimed abuse by retailers.

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