Agriculture Ministry Presents Agrifood Chain Bill to Regulate Trade Practices in Bulgaria
The Bulgarian Agriculture Ministry introduced a new agrifood chain bill on Monday, aimed at ensuring fair distribution of value and regulating trade practices across the country's retail sector. Agriculture Minister Georgi Tahov emphasized that the bill seeks to improve relationships between farmers, suppliers, and retail chains, ensuring fair prices for all stakeholders. The law will apply to all retail chains operating in Bulgaria, CE Report quotes BTA
Minister Tahov described the bill as a crisis measure, targeting 22 key products out of the thousands sold in Bulgarian stores. It aims to create a balanced, transparent trade environment by enforcing mandatory written contracts, an electronic tracking system, and a register of middlemen.
Key provisions of the bill include a requirement that at least 50% of certain food products in large retail chains must be of Bulgarian origin, including milk, meat, eggs, honey, and seasonal fruits and vegetables. The law also introduces limits on trade mark-ups and promotional discounts, with surcharges on agricultural products capped at 20% of the final price (excluding VAT) and promotional discounts not exceeding 25%.
The bill also mandates the establishment of an observatory under the Council of Ministers to analyze costs and value distribution along the agrifood chain. Retailers will have one year to comply with the new regulations, with the option for an extension if needed.
Minister Tahov expressed confidence that if passed, the law could lead to a reduction in retail prices by at least 20%.
