An agreement is signed in Latvia to reduce food prices

 Representatives of the Latvian government, food producers and trade organisations have signed a voluntary agreement to reduce the sharp rise in food prices.

The Memorandum of Understanding was signed by the Minister of Economy Viktors Valainis, the head of the Food Trade Association Noris Kruzitis, the President of the Chamber of Industry and Commerce Janis Endzinis, and the head of the Central Union of Dairy Processors, Janis Šolkas.

The document was also signed by Inara Šurė, Chairman of the Council of the Federation of Food Industry, Guntis Gutmanis, Head of the Council for Cooperation of Agricultural Organisations, Juris Lazdinis, Chairman of the Board of the "Valstiečių seimas" (Peasants' Seimas), Zaiga Liepinė, Head of the Centre for Consumer Rights Protection, as well as by a number of other partners in the agreement.

The Memorandum provides for three strands of food price restraint: the establishment of a basket of low-priced goods, price comparison measures, and the promotion of trade in locally produced products.

The low-price basket will include at least one product in each of the 10 lowest price categories and will be regularly adjusted to encourage competition between traders. The list will be drawn up by the National Statistical Office on the basis of daily data provided by traders and published by the Ministry of Economy on its website. Traders will be obliged to do so under the new Consumer Rights Protection Act.

Minister V. Valainis expressed the opinion that the consequences of this agreement will be reflected in the real prices of food products within a couple of weeks.