The Limited Times

Now you can see non-English news...

Senate passes suspension of resale at a loss, a “provocation” for farmers

2023-02-09T08:38:34.832Z


The ban on reselling at a loss forces distributors to offer food products with a minimum margin of 10% to avoid price speculation.


On Wednesday, senators adopted in committee the bill by Renaissance deputy Frédéric Decrozaille aimed at reviewing the balance of power between manufacturers and large retailers, while suspending however the obligation imposed on distributors to sell food products with a minimum margin of 10%. .

The text will be examined in the hemicycle in first reading from next Wednesday.

"

The inflationary context completely changes the game

," said centrist rapporteur Anne-Christine Loisier to AFP, for whom it is necessary to "

integrate

" the consumer into the complex equation of relations between suppliers and distributors.

It is for this reason in particular that the senators have put the question of the threshold for resale at a loss (SRP+10) back on the table.

The text of the National Assembly extends until 2026 this provision obliging distributors to sell food products with a minimum margin of 10%, which expires in April.

"Price war"

The senators propose to suspend this measure for two years, until January 1, 2025, which could correspond to the period of inflation.

The FNSEA immediately cried out for “

provocation

”, considering that this initiative “

risked having dramatic effects for the entire sector

” by relaunching “

a price war

” on food products.

This device "

has absolutely not worked

", retorts the rapporteur, for whom it is "

about 600 million euros taken each year from the pocket of the consumer

" without benefiting the farmers.

Read alsoHow inflation wins over all purchases in everyday life

Another initiative of the senators: they want to extend to all consumer products, in particular hygiene and cleaning products, the supervision of promotions on food products.

According to the commission, this measure would have "

a minimal inflationary effect, much lower

" than the gains in purchasing power that the suspension of the SRP+ 10 would represent. For Anne-Christine Loisier, it is a question of protecting a French sector, whose Covid has shown the importance.

With regard to the flagship measure of the Decrozaille bill, experimentally modifying the balance of power between suppliers and industrialists in the food industry, and mass distribution, the senators "

framed

" the device.

In particular, they provided that in the absence of an agreement on March 1 between supplier and distributor, the price applicable during the one-month notice of termination should take into account "

the economic situation of the market

" (inflation, average increases accepted by competitors...).

Source: lefigaro

All news articles on 2023-02-09

You may like

Trends 24h

Latest

© Communities 2019 - Privacy

The information on this site is from external sources that are not under our control.
The inclusion of any links does not necessarily imply a recommendation or endorse the views expressed within them.