Prime Minister says no reasons for social bread price increases till yearend at least

Prime Minister Vasile Tarlev stated that at least until the year end there are no reasons for price increase for social bread, and till that time, the Government, through the reserves it has, is ready to intervene to keep the current price stable. He mentioned that despite the fact that prices are imposed neither by Prime Minister nor by Parliament nor by President, but by the market, depending on demand and supply, Tarlev said that in case of basic needs authorities can manipulate the price. On that basis there are laws that limit some price components, as profit yields, and all economic agents that deal in that domain have to comply with them. “We do not demand that economic agents produce at a loss”, said the Prime Minister, mentioning though that the Government will carefully monitor that the laws are observed. In reference to the reports presented Friday at the meeting of the Commission for Emergencies, Vasile Tarlev pointed out that at present governmental institutions already take steps to ensure the country’s food security after the year end. Till then the majority of food production enterprises do have the necessary reserves, and can not economically justify any price increase for social bread. According to “Moldcoop”, which has a market share of up to 15% of bakery products, there are reserves of flour and wheat up to March 2008. “Franzeluta” also has the necessary reserves till the end of the year. The price of other bakery products will be determined by demand and supply, says the Prime Minister. According to the Ministry of Economy and Commerce at present the purchase price of wheat on the domestic market is 3.2-3.5 lei per kg, and of flour 4-4.5 lei per kg.