Chains threaten to reduce the range of socially significant goods

The bill, which provides for a reduction in the term for paying for food products to 4-10 days, may lead to a reduction in the range of socially important goods on store shelves. This is warned by the Association of Retail Companies (AKORT, unites, among other things, X5 group, “Magnet“,”Ribbon“, O’Key, Metro, Auchan). The letter was sent on December 16 to the head of the FAS, Maxim Shaskolsky, follows from the draft, which Vedomosti got acquainted with. The FAS confirmed receipt of the letter, adding that they would consider it.

The bill, which noticeably reduces the timeframe within which a store is required to transfer funds to suppliers of socially significant products, was submitted to the State Duma at the end of November by a group of deputies led by State Duma Vice Speaker Alexei Gordeev (United Russia) and Chairman of the Duma Committee on Agrarian Issues Vladimir Kashin (KPRF). Now the law on trade obliges chains to pay suppliers for goods with a shelf life of less than 10 days no later than 8 working days, 10-30 days – no later than 25 calendar days, more than 30 days – no later than 40 days.

This leads to the fact that food producers experience a constant shortage of liquidity, the explanatory note to the bill says. The loans they attract increase the cost of production, and a decrease in the profitability of enterprises can lead to supply disruptions. Postponement of payments, according to the authors of the project, is a hidden free trade credit on the part of suppliers.

In order not to disturb the imbalance, the deputies proposed to oblige retailers to pay within four days for goods with a shelf life of less than 5 days, within 8 days for goods with a shelf life of 6-9 days, and within 10 days for all socially significant products.

The list of socially significant goods includes the main types of meat, butter and sunflower oil, milk, eggs, sugar, salt, tea, flour and bread, various cereals and pasta, tea, borscht vegetables and apples.

According to AKORT, the bill will not allow to reduce or at least contain the price increase for these products, as it will increase the logistical burden on suppliers. For the same reason, the assortment will be reduced, which in the future may lead to the bankruptcy of small and medium-sized producers. Retail, on the other hand, will not be able to contain the price per shelf for socially important goods.

The interlocutor of Vedomosti in one of the retail chains explained that if the amendments are adopted, the turnover of a number of products on the shelf will exceed the minimum payment terms. In order to sell batches faster and not lose working capital, chains will reduce the volume and range of purchases, increasing their frequency, which will increase logistics costs, the source explained.

The authors of the bill justify its necessity by the fact that food producers began to experience pressure from suppliers of raw materials, who switched to prepayment and reduced the delay. There, according to the explanatory note, the term of payment for packaging has decreased by an average of 40%, ingredients – by 60%, transport services – by 70%. But AKORT points out that the providers of these services for product manufacturers are, for the most part, Russian companies. It is in this part that the association, which unites the largest retail chains, proposes to apply regulatory regulation.

Vedomosti sent a request to the Ministry of Agriculture, the Ministry of Industry and Trade, as well as AKORT, but it was not possible to get a prompt comment.