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Thursday, February 22, 2018

“The law about the disappearance of food: the frightening consequences of new amendments

Deputies of the state Duma of the VI convocation on the last day of its work, slammed the door. Apparently, much hurry to rush to new elections. About odious anti-terrorism package “MK” already repeatedly wrote (see for example, numbers 24 and 25 June). But they also quickly in the second and third readings adopted amendments to the Law “On trade” and the Code of administrative offences provides for a reduction in the maximum level of so-called “rebate” (fees) to retailers from suppliers from 10% to 5% and the reduction of payment terms supplied products. Seemingly, we should only applaud “historic decision” as the law called his co-author Irina Yarovaya, Chairman of the Committee on anti-corruption. However, good intentions often paved the road to hell. Experts and participants of the market warn that the adoption of GD “raw” amendments, the range of products on the shelves of trade networks certainly will decrease sharply, especially due to the fact that the law should enter into force ten days after its publication.

photo: Natalia Muslinkina

The law “About trade” have long been subjected to significant changes. Lawmakers are trying hard to protect the interests of producers and suppliers in their fight with the retailers. The latter, indeed, a few years ago ruled the roost: for example, delayed payment of delivered goods beyond a certain former version of the law limit of 60 days. Immediately prior to the adoption by the state Duma of the latest amendments, the terms of payment is determined 10 days after receipt of the goods (or documents) to 45, depending on how it spoils quickly.

Of course, retailers need to keep in the black body. Too in this area, large profits, part of which, moreover, is easily hidden from the tax man. And the prices are being manipulated, and producers of ridicule, leaving the latter without a part of your hard-earned money. And they can not develop.

But what is interesting. How much would a state regulator clamped retailers, prices in the fall. On the contrary, in the second half of 2014 and the entire 2015 food prices grew wildly, up to 50% per annum. But it’s not the size of bonuses and the timing of payment. All made with the collapsed ruble and a food counter-sanctions.

At the beginning of 2016 price braked. While accumulated inflation reached only 3.1%. Last year at this time, it three times exceeded current levels. At the same time, as estimated by government experts, the products become more expensive slower than non-food goods and services.

But again, not due to the pressure on traders of the government and deputies. Just falling consumer demand (last year he fell just 10%, now the numbers are not so scary, but still demand deflates). And it falls because the real incomes of the population. According to Rosstat, in may, they again sank more than 5%.

Networks, especially the economy, we have to fight for every customer to the last crumb. Various discounts apply, in which consumers bought and sold.

So why the fuss? Why introduce new restrictions on the retail?

We will remind, the bill “On amendments to certain legislative acts of the Russian Federation on Antimonopoly regulation and provision of food security” group of deputies and senators, headed Spring submitted to the state Duma in January 2015. In may of the same year he passed first reading. And hovered. About the need for its rapid adoption (even before the termination of the mandate of the state Duma VI) two months ago, warned Vladimir Putin following a straight line.

Here the deputies and rushed, taking in the second and third readings, according to many of them quite “raw” law.

So, what will be changed in regulation networks? Primarily bonuses for promoting goods retailing will be limited to 5%. Now 10%. These “awards” will be included and all other overheads of the suppliers.

Another important point is the reduction of the period within which the retailer must pay the manufacturer for the delivered goods. For perishable goods with a maximum of 8 days for goods with a shelf life of up to one month to 25 days, more than a month — 40. The terms of the deferred payment will be calculated from the date of transfer of the goods in the trading network, and not from the date when the provider gave the retailer a complete set of documents for the products.

Measures hard. But doable, as even confident networkers. Suppliers generally rather rubbing their hands. But the retailers had assured that they will give a year in order to renegotiate all contracts and change documentation. However, it later became known that the law will come into force on 1 January 2017. However, at the last moment, i.e. June 24, the last working day of the Council, it was stated that all will enter into force 10 days after official publication of a legal act. However, permitted new contracts to be concluded until 1 January.

But in any case, networks will have to survive quite a long period of disruption. Their representatives have warned that this will inevitably reduce the range. May even return long-forgotten deficiency.

Manufacturers comfort: the shelves will remain full.

But none of them promises to reduce or at least stabilize food prices. They will continue to grow. As always, the authorities are fond of regulation of the market, and buyers still choking on the new prices. It is better to be spurred competition among networks. Then it would be the size of the bonus would not be a major contradiction between the retail and production.

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