In the state Duma introduced two bills on regulation of prices for socially important food products. Lawmakers are convinced that in the conditions of pandemic and economic collapse is the most effective measure is the introduction of additional value restrictions. Of course, to freeze the prices only to consumers that will not help. Forced losses on certain groups of goods will motivate the entrepreneurs to increase the cost of other products. From which it follows that the measures proposed by the deputies, will lead to the opposite result – higher prices.
Recall, back on April 9, Prime Minister Mikhail Mishustin supported the idea of deputies on the development of a mechanism to limit the rise in food prices. A week later there was the first legislative attempt to curb the rise in prices.
a Group of deputies from “Fair Russia” led by Sergei Mironov in the state Duma introduced two bills on state regulation of the prices of the products. Under the first initiative, the Cabinet will be obliged to freeze retail prices for some socially significant products at their higher prices over the month by more than 30%. The second document gives the regional government authority to limit prices for the same categories of products.
However, it is not clear why in principle we need this parliamentary initiative. After all, a similar law was already passed in 2010. The document clearly stipulated the rules for establishing maximum allowable retail prices for the commodities: oil, flour, bread, salt, eggs. So if the MPs there is an urgent need for regulation, then they can meet her now.
a Proposal for the restriction of prices in the interests of consumers – the phenomenon of the same order as, for example, a total check passes in the Moscow metro. Done for the good of the people, but the reality is different. The negative effects can transcend the seeming positive, says the chief analyst of Teletrade mark Goikhman.
“If you artificially constrain prices by prohibitions, the trade of the network, and then the producers will sell and produce less unfavorable goods. Appears deficit,” he warns.
as an example, the expert reminded about the government imposed surcharges of 10% on medical masks, respirators, gloves at the wholesale and retail level. The measure has led to the fact that these goods are no longer available for sale in pharmacies.
“Another consequence of such a restriction in food prices — they will be less available in stores. Thus, they will become much less affordable for people, emphasizes in real. — This will provoke even greater demand and the temptation to raise prices. And there is not far to “black market” beef or buckwheat, “coupons” for food, as well as the sale of “not more than two pounds in one hand”.
withcapture Academy’s Director of financial management and investment Arseniy Dadasheva, at the moment, entrepreneurs are guided by market realities: the products you need to create, package, transport, put on a shelf. Thus, the amount of costs each of the parties to this process are extremely high: salaries, taxes, utilities, gasoline. If all of this will be expensive and the final price for the item in the store is too big, buyers simply will not buy it. This is the best limiter for the abnormal rise in prices.
“Such legislative initiatives only work in theory, whereas in reality it is impossible administratively to decrease by something the price and expect the rest of the products is next to no rise, — says the analyst. — It is necessary to solve the problems that led to expensive production, and not to contribute to the emergence of deficits: no one will produce goods, which implementation ceases to be profitable”.
a More efficient method of cost containment is a food rationing system, which is offered to enter the business, says a leading analyst of Forex Optimum Ivan kapustyasky. “Food stamps should be provided to all citizens who have lost their jobs, the poor, and those wages have largely declined. In Russia there may be about 34 million people: 15 million unemployed, plus 19 million living below the poverty line” — calculated the expert.
