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Relation between producers and supermarkets to be regulated by law

Representatives of supermarkets in Romania and of employers' associations in the food industry will be summoned, on Tuesday, by the committee of economic policy of the Chamber of Deputies, for discussing the drafting of a law regulating the relationship between producers, supermarkets and food suppliers. 'Representatives of employers' associations and supermarkets were summoned on Tuesday, to discuss the conclusions of an inquiry regarding the relationship between producers and supermarkets, ' said, for Agerpres, Mihai Tudose, head of the economic policy committee in the Chamber of Deputies. The committee verified if there is a legislative framework allowing retailers to take duties from the producers present in their stores.

According to representatives of the employers, the three parties will talk about a legislative initiative for regulating the relationship between producers, supermarkets and suppliers of foods, on the basis of a code of good commercial practice for supermarkets, okayed by the Council of Competition, the Ministry of Agriculture and Rural Development and the Ministry of Economy and Finance.

In early March, the employers' associations and the trade unions in the food industry accused hypermarkets of a rise in profit by an unjustified and artificial increase in prices and by the use of hidden duties.

The employers' associations said the supermarkets make use of excessive power by imposing excessive contract conditions, because of which, producers in Romania come to work exclusively for these supermarkets, and their profit rate is very low.

According to employers' associations, by the use of 'hidden duties', prices increase artificially, and the profitability of supermarkets comes to stand between 30 percent and 60 percent, with producers and consumers reporting losses.

'Supermarkets are using in their relations with suppliers a system of discriminatory and anti-competition practices, obliging producers not to market products in other stores for lower prices. Such practices lead to an artificial rise in prices in the market, as well as to the disappearance of proximity stores, because the conditions imposed by supermarkets drive away small, local, traditional producers, who cannot meet the volumes and the (supply, financial) conditions imposed, according to information offered by employers' associations, ' these associations stressed, in March.

In context, the employers' associations asked forbiddance of construction of supermarkets downtown, in residential areas, they required that a 'test of competence' be mandatory, before authorizations are given for building new supermarkets.

They warned that traffic jams will be more and more frequent, green areas and playgrounds will disappear, the price of land in residential areas will increase.

 

Sursa: http://www.rompress.ro

Tags: supermarkets producers associations between employers