Change the prices of basket products / How much flour, oil and sugar will be traded

Board of Transparency and Wholesale / Retail Price Monitoring of basic food products and other related products, established pursuant to normative act no. 7, dated 18.03.2022 “On transparency and price monitoring for some basic food products and other related products, as a result of the special situation created in the market”, in the meeting of 1 April 2022, decided to approve the list of basic food products to be monitored, as follows:

flour

Sunflower oil

sugar

Long grain rice

This decision is mandatory for all entities that wholesale / retail these products.

The Transparency Board also decided to approve the margins that will be applied to some basic food products, as a result of the special situation created by the increase in international prices.

The Board decided as follows:

1. Approval of the ceiling margins to be applied to some basic food products, as a result of the special situation created by rising international prices. Any economic operator trading the following products, whether importer, wholesaler, carrier or retailer, is free to apply lower gross margins on these products, than those resulting from the application of ceiling margins approved by Board, offering lower selling prices in the market than those resulting from the application of these margins.

2. For the long grain rice item (1 kg) the following ceiling margins are approved:
3. The ceiling margin of wholesale trade of long rice is 11 ALL / kg above the cost of import plus duties paid to customs. This margin covers the operating costs of the importer and packaging within the country.
4. The trade margin of the carrier which can be wholesaler, retailer or third parties, from the wholesaler’s warehouse to the retailer’s warehouse is 2 ALL / kg above the price calculated according to letter “a” of this paragraph.
5. The trade margin of the sale in the retail trade units of long grain rice is 3 lek / kg over the price calculated according to letter “a” of this paragraph plus the transport according to letter “b” of this paragraph.

3. The following margins are approved for the sugar item (1 kg):
4. The ceiling margin of wholesale trade of sugar by the importer and the packer is 15 lek / kg (6 lek / kg for the importer and 9 lek / kg for the packer) on the cost of import plus the duties paid to customs.
5. The trade margin of the carrier which can be wholesaler, retailer or third parties, from the wholesaler’s warehouse to the retailer’s warehouse is 2 ALL / kg above the price calculated according to letter “a” of this paragraph.
6. The trade margin of the sale in the retail trade units of the sugar product is 3 lek / kg over the price calculated according to letter “a” of this paragraph plus the transport according to letter “b” of this paragraph.

4. For the mass flour item the ceiling margins are approved as follows:
5. The ceiling wholesale trade margin of flour from the manufacturer and packer is calculated as follows:
   1. The cost of importing wheat plus customs duties is added to them by 32% the cost of processing and packaging from wheat to finished flour product; AND
   2. On the costs calculated according to the above point “i”, we add the trade margin of 2.5 ALL / kg for wholesalers.
6. The trade margin of the carrier which can be wholesaler, retailer or third parties, from the wholesaler’s warehouse to the retailer’s warehouse is 2.5 ALL / kg above the price calculated according to letter “a” of this paragraph.
7. The sales trade margin in the retail trade units of the mass flour product is 2.5 ALL / kg above the price calculated according to letter “a” of this paragraph plus the transport according to letter “b” of this paragraph.

5. For the article sunflower oil the ceiling margins are approved as follows:
6. The ceiling margin of the wholesale sale of sunflower oil by the importer is 35 ALL / liter on the cost of import and duties paid to customs. This margin covers operating costs, incubation costs, as well as packaging costs when this product is imported open and packaged locally.
7. The trade margin of the carrier which can be wholesaler, retailer or third parties, from the wholesaler’s warehouse to the retailer’s warehouse is 2 ALL / liter above the price calculated according to letter “a” of this paragraph.
8. The sales trade margin in the retail trade units of the sunflower oil product is 4 ALL / liter above the price calculated according to letter “a” of this paragraph plus the transport according to letter “b” of this paragraph.

After analyzing these margins, the Transparency Board decided that these products should be offered to the household consumer in markets at prices not higher than:

101 lek / kg for long grain rice (1 kg)

104 lek / kg for sugar (1 kg)

90 lek / kg for mass flour

For sunflower oil product, because different operators have significant differences in the purchase prices on import of sunflower oil, the weighted average cost of customs clearance will not be applied and no unified selling price will be set by each entity, but any importer of bottled oil or importer of oil that bottles and packages it in the country, will apply the allowed margin on the cost of importing their product according to the customs declaration for each import party according to the margins provided in paragraph 5 of this decision .

6. The Tax Administration monitors the market through the verification of invoices issued by entities during the period of the special situation created in the market and reports to the Board every month within the 10th of the month following the reporting period.
7. This decision enters into force on 10.06.2022 and extends its effects until the next meeting of the Board.

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