Mandatory prices are detrimental to producers and consumers

According to the economic correspondent of Fars news agency, in a press conference today, the economic activists of canned and tomato paste producers criticized the imposition of mandated prices for these two products and announced that setting mandated prices is detrimental to producers and consumers.

In this meeting, they emphasized that if the government insists that the price of these two goods must be mandatory, then they should determine the real price so that the producer does not suffer more and the production cycle continues.

Masoud Bakhtiari, Vice Chairman of the Board of Directors of the Iranian Cannery Syndicate, announced in a press conference held on the occasion of the Journalist’s Day: The prices of the order are much lower, which has caused the factories producing two products, paste and canned food, to reduce their production by about 50%.

He stated that a lot of follow-up was done to determine the truth and inform the producers, and said: The price of canned fish published on the support organization’s website is 35 thousand tomans, but our price analysis shows that the price should be much higher than this. .

The Vice Chairman of the Board of Directors of the Iranian Cannery Syndicate stated: Even with a zero percent profit margin, each can should be 41,500 Tomans, but the producers are satisfied with even 40,000 Tomans to keep the production wheel turning.

Stating that the producers will continue their cooperation with the government, he said: We expect that the government will not withhold its support from the producers and allow expert and realistic prices to be included on the product as soon as possible.

Bakhtiari, in response to the question of the Fars reporter, who asked, if the price of your product increases, the demand for the product will also decrease and you will lose money in this area? Have you thought of a solution for this? He said: The real price is always in favor of the production and the consumer. Even now that the prices are low, it is possible that the quality of the product will be low, but if the prices are real, the quality will be increased under the shadow of the competition.

In response to another question from Fars reporter, what is the solution to support the people? He said: Our proposal is that the government removes the value added tax from these two products as well as 11 other items. In this case, by supporting the producer and maintaining the profit margin for them, the price for the consumer will also decrease.

Bakhitari, in response to another question of Fars reporter, is it possible to maintain more profit for yourself by increasing productivity and reducing production costs and not increasing prices? He said: Only 12% of the production costs are in our hands, and 78% are related to raw materials and other things that are in the hands of the government, and this initiative should be spent by the government, and we expect the same.

He added, for example, workers’ salaries have increased by 57%, and the price of tuna fish has increased from 35,000 to 55,000 tomans, and even imported ones are 65,000 tomans. On the other hand, the head of the Fisheries Organization says that it is not possible to reduce the price of tuna, while 70% of the price Canned fish depends on this.

*Decisions are still pending between the two ministries of jihad and silence

In the continuation of this meeting, Mohammad Mokhtari, a member of the Board of Directors of the Iranian Cannery Syndicate, emphasized that the mandated prices hindered the production and said: “Unfortunately, despite the implementation of the abstraction law, the decisions between the Ministry of Jihad and Peace remain suspended, even though the experts of the two Ministries of Price They consider the current situation to be detrimental to production, but they continue the current situation.

According to this official, the authorities have verbally set the price of each canned food at 45 thousand tomans, but it has not been announced yet.

He went on to say: According to an official of the Ministry of Agricultural Jihad, a number of factories had changed their prices and suffered heavy fines.

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