People shopping in the market / Photo: Free Press / Dragan Mitreski

Recycled measures for price reduction from 3 to 5 denars

The reactions are even greater when one knows that the reference prices were those from February 1, when most suppliers had already delivered even after several price increases, such as those for milk, eggs, cooking oil, sugar, coffee, chocolate and bakery products. Some traders are reporting that even after yesterday's Government decision, some suppliers have announced new price increases.

The Government's decision to limit margins on 102 product groups or more than 1.000 food and non-food products, as well as limiting margins to 5 percent on basic food products, such as milk, bread, flour, cooking oil, yogurt and sour milk, has caused dissatisfaction among both citizens and traders. Both assess that this is a step back and a recycling of the previous baskets, slightly upgraded and supplemented, with a limited shelf life, which will not change anything, but will cause chaos in the market.

The reactions are even greater when one knows that the reference prices are those from February 1, when most suppliers have already delivered even after several price increases, such as those for milk, eggs, cooking oil, sugar, coffee, chocolate and bakery products. Some traders are briefed that even after yesterday's decision by the Government, some suppliers have announced new price increases, which means that neither the boycotts nor the Law on Unfair Trade Practices are being implemented.

The saddest thing is that even with these reductions and restrictions, it is estimated that certain products will be reduced by 3 to 5 denars, which will not bring any greater relief to living standards.

– What good is a price reduction of a few denars to me, when with a thousand denars spent on a few basic products, we don't even have change left for chewing gum. It is obvious that the Government has succumbed to the pressure of traders, suppliers and manufacturers and made concessions that would satisfy them – the citizens are disappointed.

From yesterday's briefing by Deputy Minister of Economy Marjan Risteski, it is also striking that all participants in wholesale and retail trade are required to have at least 70 percent of the goods they carry on the shelves. Unofficially, this is caused by threats that it is unprofitable for them to operate with such margins, so it is realistic to expect some kind of silent boycott, which means that some of these products will be in short supply or will be third-rate, as in previous measures taken by the Government.

– I expect that my supply of vegetables and fruits will decrease, just as happened in previous government actions. Seventy percent of these products are currently imported, so suppliers will have an excuse not to carry them – briefs a trader from Aerodrom.

Smaller retailers have already expressed serious concern following the Government's decision and are requesting an urgent meeting with Prime Minister Hristijan Mickoski and Minister of Economy and Labor Besar Durmisi to review the consequences of these decisions.

– Such hasty decisions cause significant damage to a large number of business entities, which play a key role in the development of the economy – say the newly formed chamber of commerce, which unites 89 entities with 4.700 employees.

According to them, these companies face uncertainty in their future investments and activities, while at the same time sending a negative message to all potential investors in the industry.

– On the one hand, it is stated that basic products are marked at 20-25 percent, which is the reason for limiting the margin to 5 percent, but on the other hand, it is claimed that there will be no significant reduction in prices. It is logical that prices should be reduced by 15-20 percent if the margin is reduced in this way. In addition, these decisions do not protect socially vulnerable citizens, but rather consumers with higher incomes will have the greatest financial benefit – react the traders.

According to them, for example, in the meat products group, the prices of luxury products will also need to be reduced, which means that the priorities of citizens with lower incomes are not taken into account.

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