DélKerTÉSz calls for removal of price stops in Hungary

Sándor Nagypéter, president of DélKerTÉSz, is calling for the removal of the price stop mechanism and the Price Monitor system to protect small-scale fruit and vegetable producers in Hungary. He argues that current interventions cause market distortions, as retail chains use these systems to pressure suppliers into uniform pricing, often forcing producers to absorb losses due to varying logistics and packaging costs.

Nagypéter suggests that instead of price interventions, the government should implement a 5% VAT rate for the sector. This reduction could improve the profitability of small and medium-sized enterprises, increase the visibility of domestic products on shelves, and help formalize the industry. He noted that the current price stop measures cost the budget approximately 150-160 billion forints.

Despite challenges from extreme weather and market pressures, DélKerTÉSz reported a revenue of 16.2 billion forints between January and August, a 2 billion forint increase compared to the previous year. This growth was supported by investments in irrigation, ventilation, and fertilization technologies to mitigate the effects of drought.