New regulation for shops in Hungary will have a negative impact on consumers
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The new government regulation will put shops in an impossible situation: they would have to stock as many price cap products as there are currently not enough in Hungary. Cheap imports could flood the country, but shops cannot obtain them overnight – which the regulation would require. The industry could be under pressure, with a further drastic price increase for non-price-capped products.
A market-destroying regulation?
According to one of the sources of portfolio.hu, the new “market-destroying” regulation is impossible to enforce with the double stock level, meaning that the government’s aim could easily be to punish and close down some (foreign) stores.
The Hungarian industry will not be able to meet the double order of price capped products. This is simply impossible, said a source to Portfolio in connection with the new government regulation. The rule, which will come into operation from mid-January, will require companies to stock price capped products on the shelves always, with a strict interpretation that they must provide twice the average daily stock previously required.
“In many cases, they could not even provide the single amount,”
said one of their sources, who said that there had been a continuous shortage of the price capped products in recent months and that there were still problems with the delivery of UHT milk and sugar. According to him, the Hungarian industry is not at all prepared to supply twice the volume, which the food industry will not be able to do later.
“It’s hell in the shops because people are already hoarding. But the cow won’t give any more milk than it has been. The chicken won’t have four breasts.”
Retail chains will now have to order double the quantity, regardless of demand, if they want to avoid a fine, said one of our sources on the fresh regulation. Therefore, many may open up to imports, but to prepare and double the quantity in 15 days seems impossible.
The purpose of the regulation and its effects
The regulation’s unhidden purpose is to end the shortage of groceries. However, by stimulating the market, all the cabinet is achieving is:
You áll wanted Orban again so this is what you get you knew it already you were warned many times but you ignored all so burned your ass again and have to sit on the balusters.
You people never seem to learn from your mistakes as history showed.