Annabella quiroga
03/25/2021 12:37 PM
Clarín.com
Economy
Updated 03/25/2021 12:37 PM
On March 31, the Maximum Prices program that the Government designed to try to get inflation back on track expires.
In the official offices they are finalizing the details to add
a new extension,
despite the fact that the business sectors oppose the continuation of this scheme.
The Maximum Prices program was born with the pandemic.
On March 19 of last year, a decree was published with a list of
2,000 products
chosen by the Government among the main products of the basic basket that should reduce their price to March 6.
The program originally ran for 30 days.
But it was extended along with the quarantine.
In July an increase of 4.5% was allowed.
And from there some products were released.
In parallel, the Government was reinforcing another program, "Prices Care", which started with 400 products and gradually increased
to the 600 it has today.
Despite price agreements, food is rising more than headline inflation.
Photo: EFE / Juan Ignacio Roncoroni
The difference between the two programs is that Maximum Prices is a compulsive program, while in Careful Prices the companies choose which products make up the list.
The Government defends both programs as a central strategy to lower inflation.
Despite these tools, food, the backbone of the scheme, continues to escape.
In the last twelve months they
increased 43.9%
against a 40.7% rise in the general price index in that period.
The same trend continues in March.
Despite this evidence, the Government is doubling down on controls.
In the case of Maximum Prices, it is already in talks with the companies to extend it for
two more months
, until May 31.
Care Prices expire April 7.
The renewal will also be sought here, with more items in this basket.
Despite the insistence of the Government,
companies want to put an end to Maximum Prices
.
This was stated by Daniel Funes de Rioja, head of COPAL, the entity that groups food companies, in dialogue with
Clarín
.
"What we are asking for is the completion of Maximum Prices. We must end the process of frozen prices."
To show good will in the fight against inflation, the executive highlights that in recent months they have increased by more than 60% the number of products in Care Prices.
"We are in dialogue with the government."
Last week, the government added
another element of pressure.
SIPRE is the "Information System for the Implementation of Economic Reactivation Policies" that requires 1000 large companies to report prices, quantities sold and stock of final and intermediate goods.
The SIPRE covers companies in the food, beverage, perfumery, cleaning and personal hygiene sectors, widely used supplies, household appliances, furniture and animal feed.
The Government assures that with this methodology it seeks to
prevent shortages or shortages
of inputs and final products and to improve its policies for the domestic market.
From the start, the private sector rejected the new controls.
"With respect to SIPRE we have expressed our observations and
we are preparing an administrative presentation
. We consider the required information to be overabundant and excessive. Here what matters is that there is supply. Stock management is sensitive information, it is a commercial strategy of each company. The government should not get involved in that, "said Funes de Rioja.
This administrative resource prepared by COPAL will be presented to the Ministry of Productive Development, headed by Matías Kulfas.
It is a first step on a path that
could end in justice
if an agreement is not reached.
Sources from the business sector say that the launch of SIPRE took them by surprise.
And they point out that in the midst of the renewal of Maximum Prices and Care Prices "the Government is pressing us with this to leave us
less room to negotiate
, when they know well that the few increases they authorize do not cover the escalation of costs."
From COPAL they highlight that only increases of between 4 and 10.8% were authorized, while the accumulated increase in costs was 35% in logistics;
between 45% and 250% in raw materials;
40% for the rise in the dollar and 20% for costs associated with the pandemic.
AQ
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