Argentina's government will allow "protective price" products to be fine tuned, and manufacturers complain about "a drop in the bucket"

China-News.Net - Finance October 1, 2020, 2:32 am Lu Fang

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According to Argentina's Chinese news, the Argentine government's "precios cuidados" plan will be updated quarterly and is expected to be updated again in October. In each update, people focus on the food prices that directly affect the basic people's livelihood.

According to Argentine media reports, the price agreement reached between the government and the private sector is expected to rise by 4%. The government also plans to increase the variety of goods and the latest content of "precios m á ximos" products.

Entrepreneurs in the food industry have warned of a crisis in the industry as costs rise and profitability declines. There have been calls from manufacturers to raise the price of relevant commodities and to stop the "maximum price" program.

"The price update of our products has been lagging behind," said one entrepreneur and head of the industrial alliance. The current price list is still the one dollar to Peso price. "

The government said that it would not terminate the "maximum price" plan for the time being and would not freeze the price, but would take into account the requirements of manufacturers and hope to achieve a new balance between enterprises and the government.

In this case, the government's agreement to expand "protected prices" is in progress, which includes an increase of 93 products in the construction sector and a number of food items.

In the new phase, the government plans to add healthy food and cel í ACOS food. Different from the "maximum price" plan commodities, such products are recommended by manufacturers to be included in the government plan, while the "maximum price" plan commodities must go through certain procedures and cost audit process.

Entrepreneurs in the industry disclosed ahead of time that "the average increase of food in protective prices is 4%", and said that "this is only a relief" and not enough to make up for the gap of cost increase accumulated since March.

It is reported that due to the government's price fixing measures, some basic livelihood goods are out of stock. Taking edible oil as an example, supermarkets said it was becoming more and more difficult to purchase, while the manufacturer explained that due to the rising production costs, the government did not control the prices of upstream suppliers. In addition, flour, Madai tea and pickled meat products are out of stock. No matter the manufacturer, the direct seller and even the large-scale wholesaler are hard to find.

One entrepreneur said that some manufacturers gave reasons for logistics problems, while others unilaterally reduced supply without prior notice and cancelled all discounts or promotions. In response to these complaints, the government's response was "to cooperate with provinces and municipalities, to carry out more than 24000 inspections nationwide." (original title: the Argentine government will allow "protective price" products to be fine tuned, and manufacturers will complain about "a drop in the bucket")

Source: Chinese information of Argentina

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