Romanian Union Agrostar Says Food Prices Will Rise 3-5%

Agrostar said another reason prices are expected to grow is a lack of a coherent strategy from the Agriculture Ministry and called for the resignation of minister Valeriu Tabara.

"The minister of agriculture cannot intervene directly to regulate prices but he can use policies, which we currently lack. The ministry could take measures to stimulate investments and increase the EU fund absorption rate," said Agrostar head Niculae Stefan.

He said the lack of a strategy leads worsens farmers' situation and burdens Romanians with high food prices.

"In the future, the struggle for the planet's food resources will heighten and Romania, although it has a huge agricultural potential, will be merely a market for expensive, imported food products," said Stefan, adding the agriculture minister is unrealistic when he says Romania will not face a food crisis.

Early May, the head of the food industry association Romalimenta, Sorin Minea, said prices of processed food item would increase by 10-12% over the next two to three months.

According to Romania's statistical institute INS, annual inflation climbed from 8.01% in March to 8.34% in April, the highest since July 2008, mainly because of higher prices for electricity, potatoes, fresh fruit, sugar and cigarettes.

In the first four months of the year, the price of potatoes increased more than 30%, the price of other vegetables and canned goods increased 21.2%, and the price of sugar increased 17.56%. Food prices in April were 5.08% higher compared to the end of 2010.

The Agrostar union federation was founded in 1990 and has over 38,000 members from 150 unions representing all agricultural branches.

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