Bulgaria implements food price monitoring to combat excessive markups

Bulgarian MP Todor Zhikov of Progressive Bulgaria has addressed the issue of excessive food markups, stating that while there is a continuing trend of decreasing prices, some retail chains are engaging in unjustifiable pricing. Zhikov noted that economically justified markups, including production and distribution costs, should not exceed approximately 50% from production to the shelf. However, he reported observing markups of 100-120%, which he described as "pure robbery of consumers."

To combat this, a "fair price" indicator is being introduced. This metric is not a mandatory administrative price but will serve as a benchmark to identify significant deviations from economically justified values. The indicator will account for wholesale prices, merchant costs, losses, and normal operating margins. Additionally, a digital food traceability system for a small basket of products is expected to be operational by the end of September to monitor the supply chain from importers to retailers.

Regulatory bodies, including the Commission for Consumer Protection (CPC), the Commission for Protection of Competition (CPC), and the National Revenue Agency (NRA), will increase their active monitoring, particularly following the end of the double labeling period.