Staple food price cap extended until 30 June 2025

The implementation deadlines for the licensing mechanism provided for by the Emergency Ordinance for some products from Ukraine and temporary measures to combat the excessive increase in prices of some agricultural and food products will be extended, Agriculture Minister Florin Barbu announced on Wednesday at the Government meeting. According to a communiqué of the Ministry of Agriculture and Sustainable Development (MADR), as regards GEO 84/2023 for some products from Ukraine, the application deadline will be extended after 31 December 2024, until 31 July 2025 inclusive, in order to maintain a balanced market for agricultural products in Romania and the viability of farms active in the plant and livestock sectors, as well as Romanian processors.   "The measure has been proposed as the licensing mechanism provided for by GEO no. 84/2023 on the establishment of a mechanism for consultation and coordinated response in the context of the implementation of the export authorisation system introduced by Ukraine for agricultural products, as well as subsequent amendments and additions, has had the impact of mitigating and stabilising Romania's domestic production and the market of some agri-food products, namely: wheat or meslin, corn, oilseeds, wheat flour, sugar, eggs, poultry meat, with beneficial effects for the entire agri-food chain," the statement said.   As regards GEO 67/2023 on the establishment of a temporary measure to combat the excessive increase in the prices of some agricultural and food products, published in the Official Gazette of Romania, Part I, no 602 of 30 June 2023, approved with amendments and additions by Law no 10/2024, Article 8 is amended, so that the new deadline for the application of this normative act will be 30 June 2025. The limitation of trade surcharges charged in the processing, distribution and commercialisation of certain essential food products has led to a decrease in the prices of these categories of products and, implicitly, to an increase in the purchasing power of the population. At the same time, during the period of application of the temporary measure provided for by GEO No 67/2023 on the establishment of a temporary measure to combat the excessive increase in the prices of some agricultural and food products, approved by Law No 10/2024, consumer price indices have fallen, the MADR claims.   "The decision to extend the term of application of this GEO was taken as a result of the fact that, during the winter period, utility costs increase, a situation that leads to a decrease in the purchasing power of the population, and the need to purchase agricultural and food products at low prices is maintained for the products included in the annex to GEO No 67/2023. Thus, the amendment of the normative act aimed to ensure access to basic foodstuffs for low-income population and, implicitly, to protect the final consumer", explained the ministry representatives.