The government of North Macedonia has decided to limit the trade margin on basic food products to 5% in wholesale and 10% in retail for three months.
The expectation is that the implementation of the measure, which started this month and will last until 31 May, will lead to a reduction in prices of basic food products.
The government’s decision is limited to bread, sugar, Type 400 flour, crude sunflower oil and sunflower oil for consumption, long-life milk (with 2.8%, 3.2% and 3.5% fat), fresh and cured meat products, cheese, rice, eggs, pasta, wheat, fruits and vegetables.
According to the Minister of Economy, Krešnik Bekteši, in view of the increasing costs for producers of basic food products, this decision “aims to limit traders from making a profit on the backs of citizens and producers”.
Penalties For Non-Compliance
Bekteši said that the State Market Inspectorate would increase controls of retailers in the coming period, adding that penalties are foreseen for non-compliance, ranging from €800 to €10,000, depending on the company size.
Bekteši also announced the adoption of a law on unfair trade practices, pointing out that “trade margins of 30-50% in the supply chain are unfair, especially during the pandemic.”
Greece also plans to fix a cap on gross profit margins on fuel, food and other consumer goods to help curb profiteering, its development ministry said, as Western sanctions over Russia's invasion of Ukraine boosted world prices of commodities.