Argentina Accuses Danone, P&G, Unilever Of Output Curbs Amid Pricing Crackdown
Argentina is investigating consumer firms including Danone, Procter & Gamble and Unilever, along with food producers like Bunge, over accusations that they have deliberately held back production amid a government clampdown on rising prices.
The country's production ministry in a statement alleged that the firms and others had been "holding back production volumes" and had not abided by a resolution to increase output to the "highest degree of their installed capacity."
It said an investigation had found shortages in supermarkets of products ranging from cooking oil to diapers and cheese, and said that the firms under investigation must rectify the situation and restore stock levels.
The companies did not immediately respond to emailed requests for comment.
The South American nation's leaders have been trying to protect consumers from rising prices and rein in rampant inflation, forecast in a central bank poll to hit 50% this year.
The government of Argentine President Alberto Fernandez has clashed with some businesses and investors over price caps on some goods and the freezing of utilities tariffs.
On Wednesday, holders of Argentina's sovereign debt criticised such policies as short term and doomed.
The production ministry said that price cap laws aimed to protect consumers from "possible price abuses and guarantee the normal supply of products in supermarkets."
Recent fears over resurgent inflation sparked tension between Argentina's government and the large farm sector, which were eventually defused after pledges by exporters and producers to help keep domestic prices down.