Regulation on Margins aiming to stabilize prices, but also to prepare ground for arrival of new players

Minister of Domestic and Foreign Trade Jagoda Lazarevic stated that one of the goals of adopting the Regulation on Margin Limitation was to create a systemic and long-term solution, to build a more regulated system based on good legal frameworks of the European Union, but adapted to the Serbian market, the relevant ministry announced.

– The goal is to stabilize prices and prepare the ground for the arrival of new market players who will operate in a more regulated environment – Lazarevic said on TV Prva.

Speaking about the effects of the measures taken so far, Minister Lazarevic emphasized that there had been a reduction in prices, but also a reduction in taxes that had previously been very high and burdened suppliers, which had ultimately reflected in the final price of the product.

– The price structure is very complex. Our goal is to create a systemic and long-term solution and to regulate the market. The latest amendment to the regulation was necessary so that relations between suppliers and retailers would be fully aligned with the regulation, so that everything would be clear and legally regulated – said Lazarevic.

As she stated, the Ministry will continue to monitor the situation and it is certain that there will be more changes while the regulation is being implemented.

– We have monitored how retail chains operate in other markets and have seen that food prices in Serbia are higher than they should be. If the regulation had not been passed, such a practice would have continued and we do not know how far it would have gone, which would ultimately nullify everything the state is doing to increase the purchasing power of citizens along with the growth of salaries and pensions – she explained.

She also pointed out that the investigation conducted by the Commission for the Protection of Competition was pending, noting that it was not necessary for retailers to agree on prices among themselves.

– The fact is that retail chains currently operating in our market are following each other, which leads to high food prices and the occurrence of anomalies that do not exist in developed European countries – said Lazarevic.

Referring to comments that the Regulation only covers food, chemicals and personal hygiene products, Lazarevic pointed out that those were the most basic needs from which to start.

– Furniture is not bought every day, but food and basic necessities are crucial and we need to bring order to that first – said Lazarevic.

Ministarstvo unutrašnje i spoljne trgovine Republike Srbije

Ministry of Domestic and Foreign Trade

Jagoda Lazarević

Regulation on Margin Limitation