Producers support capping of trade discounts, traders oppose

Local producers consider the trade discounts should be capped by law as the sellers in the process of negotiating contracts for the supply of products seek different price discounts from suppliers, which can even exceed 30% . The given situation often makes the producers, especially the small ones, to sell the products under the cost price and this can lead to their bankruptcy. The parliamentary commission on economy, budget and finance held public hearings on the bill that allows for the introduction of a 10% ceiling on trade discounts, IPN reports.

Representatives of shop chains insist that the trade discounts are in the interests of consumers, not of traders, as these enable them to buy products at attractive prices and they remain thus loyal.

Victor Durleșteanu, who heads the employers association “ProBiz” and has a series of shops as members, said the capping of trade discounts derives from the wish of groups of interests and this is inacceptable. Another moment concerns the capping of promotional activities that, by constraints, will lead to the limitation of the rights of small and medium-sized producers that want to enter the organized trade market by promotional activities.

Mariana Rufa, executive director of the European Business Association, noted that the members of the association do not support the capping of trade discounts as this is intervention in the contractual relations.

Vitalie Gorincioi, who heads the Association “Moldova Fruct”, stated it is impossible to imagine how a small producer can survive when this has to offer trade discounts of 25%. “You go to shops and cannot find a jar of national juice. There are only imported ones there. Who do we support?” he asked.

Gheorghe Angheluță, of a dairy factory, said the trade discounts are now used selectively and generate disloyal competition between suppliers. When offering a greater discount to shop chains, the supplier has to raise the price of the product. In such circumstances, the prices of national products will rise to the level of the prices of imported products or will even exceed them. As a result, the national products will become noncompetitive.

Ecaterina Cechina, financial director of the confectionery factory SA “Bucuria”, said there are many imported sweets on the market and their prices are even lower. The market should be protected from the massive imports of products at very low prices. Their factory is large and cannot cope with massive imports, not mentioning the very small producers that will never be able to become competitors on the local market.

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