Head of FAS Evaluated the Situation With Price Growth on Commodity Markets

Head of FAS Evaluated the Situation With Price Growth on Commodity Markets
Photo: Victoriano Izquierdo / Unsplash 10.03.2022 790

The Federal Antimonopoly Service monitors pricing on socially important markets, said the head of the authority Maksim Shaskolsky at the plenary session of the State Duma on March 10. 

He noted that at the moment 217 inspections had been initiated and 22 warnings and cautions had been issued, including public statements aimed at creating a rush demand.

The Federal Antimonopoly Service notes that monitoring is conducted over the entire commodity supply chain, from producers to retail chains. In case of detecting any violations of the antimonopoly legislation, the Service takes measures ranging from warnings to initiation of antimonopoly proceedings.

The Head of FAS also noted that Russia has created a mechanism for promptly establishing economically justified prices for drugs. 

"I would like to pay special attention to control in the sphere of medicines. FAS Russia has re-registered more than 14 thousand prices, of which more than 7 thousand prices were reduced by 30% on average. Savings for citizens and the budget amount to at least 40 billion rubles a year", 

said Shaskolsky.

Drugs on the list of vital and essential medicines make up more than half of the total turnover, and since 2022 a list of 22 new titles, he said.

Shaskolsky also noted that changes in the exchange rate of the ruble lead to a noticeable rise in the cost of domestic agricultural products:

"Despite the fact that crop production is made in Russia, there is an import component in the cost of its products. There is a noticeable share of imported seeds and plant protection products. Seeding and harvesting equipment to a greater or lesser extent depends on imported supplies of individual components and parts”.

According to the head of the FAS, the cost of livestock products is also comprised of imports.

"Thus, the change in the ruble exchange rate due to the dependence of the domestic crop and livestock production on the imported components leads to a certain rise in prices. The rise in prices for crop raw materials exerts price pressure on the processing industry as well. At the same time processors also lack working capital and face logistical constraints," 

stressed Shaskolsky.

According to the head of FAS, in the current circumstances, the agency has changed its approach to the economic analysis of pricing practices for Russian goods. Now it gives priority to the balance of supply and demand on the domestic market, and export quotations cannot be taken as the main argument.

Certain categories of goods are becoming more expensive amid economic sanctions imposed by the West on Russia. The reason was the Russian "special military operation" in Ukraine. Many foreign companies announced the suspension of activities and withdrawal from the Russian market.

Source: FAS, Regnum

food markets  pharmaceutical markets  Russia 

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