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January 27, 2022

Agriculture Minister: Food prices hike won’t surpass 7 pc, analysts critical

Agriculture Minister Valeriu Tabara stated on Saturday in Vaslui while attending the Expo Zoo Agroind exhibition that food prices will not grow by more than 7 per cent in the following period. Several days before he had stated that the prices of staple food items will be “readjusted” by approximately 8-10 per cent. “Now, based on the analyses concerning the elimination of artificial costs that are included in prices along the products’ path from producers to consumers, I think I exaggerated,” Tabara stated, being quoted by Realitatea TV.

Even so, economic analysts and even food industry producers consider that the Agriculture Minister made a mistake when stating that the staple food items’ prices could register an 8-10 per cent hike because such a statement could influence the market. Some agricultural producers might interpret the Minister’s statement as a “green light.”

“I don’t find this statement opportune. The truth is some producers could make use of this statement. We are talking not only about big producers but about trade unions too. It could be a good pretext for them,” Constantin Rudnitchi, economic analyst and former adviser with the Ministry of Agriculture, stated for HotNew.ro. According to Rudnitchi, at this moment the market would not permit a price hike given the low consumption. Moreover, the RON/EUR exchange rate is fairly stable, something that favours stable prices, Rudnitchi added.

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