Combating excessive increases in agricultural and food prices: provisions of Emergency Ordinance No 67/2023

Combating excessive increases in agricultural and food prices: provisions of Emergency Ordinance No 67/2023

Numărul 27-28, 12-25 iul. 2023  »  Finance & Economics

Conf. univ. dr. Marcel Vulpoi, expert contabil

Emergency ordinance no. 67/2023 regarding the establishment of a temporary measure to combat excessive price increases for some agricultural and food products was Published in the Official Gazette, Part I no. 602 of June 30th, 2023 and it will take effect on July 30th, 2023.

The reasons for the emergence of this emergency ordinance:

  • the prices of processed foods have consistently accelerated and generalized their growth rate throughout 2022, against the background of developments on the energy and agri-food raw materials markets;
  • during 2022, all the main basic food products, such as sugar, oil, potatoes, milk, eggs, meat, bread, vegetables, fruits, have registered significant price increases, which are still maintained today and produce distortions on the market of agricultural and food products, with a major negative impact on the level of consumption and the purchasing power of final consumers, affecting the food safety and security of the population.

Main provisions:

  • This emergency ordinance establishes for the agriculture and food industry a temporary measure in order to combat the excessive increase in prices of some agricultural and food products.
  • The temporary measure to combat the excessive increase in prices applies to all economic operators registered in Romania, regardless of the form of organization, on the entire chain of production, import, intra-community trade, distribution and retail, for the agricultural and food products provided in the attachment below.

The temporary measure to combat the excessive increase in prices consists in limiting the commercial additions applied for the products provided in the annex, as follows:

a) the commercial markup applied by the processor is a maximum of 20% compared to the production cost of the product, calculated according to the accounting regulations in force, respectively the Accounting Law no. 82/1991, which includes direct and indirect expenses;

b) the commercial mark-up applied cumulatively on the entire distribution chain, regardless of the number of distributors in the chain, is a maximum of 5% compared to the purchase price to which operational expenses are added;

c) the commercial mark-up applied by the trader for retail sales and cash & carry is a maximum of 20% compared to the purchase price, to which the direct and indirect expenses of the trader are added; discounts and refunds, provided in art. 3 point 6 of Law no. 81/2022 regarding unfair commercial practices between businesses in the agricultural and food supply chain.

The commercialization of the products in the annex, during the application period of this emergency ordinance, is done only with the presentation of evidence by the economic operators regarding the value of the commercial addition applied to the products sold.

To remember! Commercial markups are applied to the VAT-free value of the agricultural and food products provided in the annex.

Important! Commercial contracts in progress, whose terms and conditions are contrary to the provisions of this emergency ordinance, will be modified accordingly within 30 days from the date of entry into force of this normative act.

Units issuing meal, gift and social vouchers, including those issued through the Support Program for Romania, regardless of the way in which the vouchers are issued, electronic or paper, and of their type, may apply to traders at the time of their settlement a commission of a maximum of 1 %.

Sanctions:

  • Non-compliance with the above-mentioned commercial mark-up quotas by processors, distributors or merchants for retail and cash & carry sales constitutes a contravention, unless it was committed under such conditions that, according to the criminal law, it constitutes a crime.
  • The contravention is sanctioned with a fine from RON 100,000 to RON 2,000,000.

This emergency ordinance applies for a period of 90 days from the date of its entry into force.

ANNEX

LIST of agricultural and food products:

1. Plain white bread weighing between 300-500 grams, without specialties

2. Cow's milk for consumption 1 l, fat 1.5%, except for UHT

3. Telemea bulk cow cheese

4. Plain yogurt from cow's milk, 3.5% fat, with a maximum weight of 200 grams

5. White wheat flour "000" 1 kg

6. Cornmeal 1 kg

7. Chicken eggs caliber M 10 pcs.

8. Sunflower oil 1 l

9. Fresh chicken meat *

* Chicken meat, in the application of this emergency ordinance, means whole chicken, chicken cutlery, whole chicken legs with bone and chicken wings, the standard version.

10. Fresh pork meat **

** Pork meat, in the application of this emergency ordinance, means processed pork, bone-in and boneless pork leg, pork loin.

11. Fresh vegetables in bulk***

*** Fresh vegetables in bulk, in the application of this emergency ordinance, means tomatoes, onions, cucumbers, dry beans, carrots, Bianca bell peppers and capsicums.

12. Fresh fruit in bulk****

**** Fresh fruit in bulk, in the application of this emergency ordinance, means red and golden apples, plums, watermelon, table grapes.

13. Fresh white potatoes in bulk

14. Cast white sugar 1 kg

(Copyright foto: 123RF Stock Photo)




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