G. Nausėda: Food Council will be an additional instrument for transparency and debate

With the government planning to establish a Food Council, President Gitanas Nausėda says it will be an additional instrument for food price transparency and a venue for possible discussions with business. High food prices must be a matter of concern for the government, the head of state said. 

„Perhaps one should not get the impression that the establishment of such a council would automatically bring down food prices by 20 per cent the next day, but as a kind of additional way of ensuring transparency of the system, an instrument for exchange of information and possible discussions with trade and production representatives," Nausėda told reporters in the Alytus district on Thursday.

He said that similar practices exist in some European and Western countries, and that new measures to control food prices in Lithuania are also necessary.

„We must use all means to ensure that food products in Lithuania do not cost as much as, according to some people, we pay for food products more than in Berlin“, – commented the Head of State. 

High food prices should be a matter of concern for the government, Nausėda said. 

„Given the fact that there are still some differences in the standard of living, such (high – BNS) prices must indeed be a matter of our concern and that this institution (the Food Council – BNS) will certainly look for the optimal solutions to prevent inflation wherever possible without violating the freedom of pricing,“ the President explained.

The government announced on Monday that the Ministry of Agriculture intends to set up a Food Council by January 29 to monitor food price developments and make proposals to reduce them. It will include traders, processors, representatives of farmers' organisations and scientists. 

Prime Minister Gintautas Paluckas said at the time that he hoped the Council would help to create a level playing field between food market players and improve the competitive environment for small entrepreneurs. In addition, he said, a lack of objective information was currently causing many disagreements between farmers, processors and traders.

The Government is committed to the establishment of such a council in its programme. It also promises to introduce a reduced rate of value added tax (VAT) on fresh vegetables and fruit, but Finance Minister Rimantas Šadžius reiterates that there is currently no scope for any VAT reductions.