RBC learned about the FAS proposal to limit the markup on eggs to 5% – Kommersant

The Federal Antimonopoly Service (FAS) proposed in letters to retailers, due to “consumer concerns” about prices, to voluntarily set markups on chicken eggs at 5% by March 2024. At the same time, representatives of retail chains claim that the average markup on some eggs has already been negative since July. The FAS provides a copy of the letter RBC.

Letters from the FAS were received by representatives of the Union of Independent Chains of Russia and the Association of Retail Companies, including the X5 Group (Chizhik, Pyaterochka, Perekrestok stores), and another large chain. FAS proposes to limit markups on all types of chicken eggs, including those that suppliers purchase under long-term contracts, while preventing an increase in actual markups on chicken eggs purchased through tenders.

The FAS explains its proposal by a significant increase in prices for chicken eggs, causing “consumer concern.” This issue was raised at a meeting of the FAS working group on trade with the participation of retail chains and industry associations on November 21.

Market participants must respond to the FAS proposal on December 4. Also, by December 6, they are required to provide data for November on the ratio of the volumes of eggs purchased under long-term contracts and tenders, with a list of specific suppliers.

According to Rosstat statistics, in October, retail chicken eggs became more expensive on average in all regions by 23.9% compared to last October. At the same time, in 18 regions the cost of eggs in October increased by 1.5–10%, in 52 by 10.1–20%, and in another 14 by 20.1–39.9%. Egg prices have not increased only in the Kamchatka Territory.

According to one of RBC’s sources in the retail network, limiting the markup on eggs in retail will not hold back prices, since the reason for the rise in price is on the part of producers. The press service of the Ministry of Agriculture told RBC that the situation in the poultry industry is under “special control.”

Eggs are included in the list of socially significant products, that is, their cost is controlled by the authorities. If a product from the list rises in price by more than 10% (except for seasonal factors) for 60 days in a row, maximum retail prices are set for it for up to 90 days. Grocery chains have already agreed to voluntarily introduce temporary restrictions on markups on socially significant products: for example, at the beginning of the pandemic. At the end of the summer of this year, regional retail chains also agreed to voluntarily introduce restrictions on markups on categories of socially significant goods, including eggs.

How the authorities are trying to curb the rise in food prices – in the material “Food Conspiracy”.

Anastasia Larina