PLDM: The rise in oil and food prices is the result of present government’s short-sighted policy

The rise in oil prices before the reaping campaign and in food prices is the result of the short-sighted policy pursued by the Communist government, which proves incapacity to promptly and adequately react to the new economic challenges, the Liberal Democratic Party of Moldova (PLDM) said, quoted by Info-Prim Neo. Veaceslav Negruta, member of the central standing bureau of the PLDM, told a news conference on June 4 that the significant increase in food prices is not only the effect of the world crisis, but also of the poor policy aimed at concentrating trade in the hands of large domestic commercial organizations that are protected by the power. PLDM draws attention to the fact that the monopolization and concentration of the economic activity in the hands of several large players leads to enormous costs that are sustained by the end-users and hinder the development of competition. Negruta says that the artificial panic makes the population purchase large quantities of oil, sugar, rice and other products. PLDM thinks that the budget profits from the additional revenues collected as a result of the price rises and from the value added tax. Given such circumstances, PLDM considers that these additional incomes should be distributed to the vulnerable groups of people that need support from the state. The money should be allocated in the form of nominative compensations to pensioners, invalids and families with many children, the cited source said. PLDM also says that the trade should be liberalized so as to reduce the growth rate of inflation. PLDM suggests creating an anti-crisis committee formed of economic experts and specialists from Moldova and abroad that would identify solutions to stop the rises in oil and food prices. “This is very important because the situation is much more difficult than the authorities present it. Definite steps are needed to avoid a crisis similar to that of 1998,” the PLDM leader Vlad Filat said. Another political party said during a conference that the Government of Moldova missed the chance of keeping the prices of food products under control. According to the president of the Democratic Party of Moldova (PDM) Dumitru Diacov, the latest increases in the prices of such products as sugar, rice and sunflower oil are the result of the semi-measures or even inactivity of the Government. He said that the authorities should take determined, pragmatic and non-populist measures in order to stop the crisis. On Monday, June 2, the selling prices of sugar, rice, oil and other food products rose by up to 50%. A kilogram of sugar was sold for 14-15 lei on the central market in Chisinau, as opposed to 10-11 lei last Saturday and Sunday. The price of rice rose from 19 lei to about 30 lei a kilogram. A liter of vegetable oil was sold for 29-31 lei. On Wednesday, June 4, the Government decided to introduce the pasta, cereals and rice in the list of goods the profit margin for which is regulated by the state. First Deputy Prime Minister and Minister of Economy and Trade Igor Dodon said that the rise in the selling prices is unjustified from economic viewpoint. During inspections, it was established that many of the wholesale companies stopped selling sugar and rice, creating thus an artificial shortage on the market. According to the head of the Center for Combating Economic Crime and Corruption Sergiu Puscuta, the economic entities that broke the law will be sanctioned.