Czech Agriculture Minister Marek Vyborny announced plans to meet with representatives of the eight largest retail chains in the country to discuss food prices. This meeting is scheduled to take place on Thursday, and while Vyborny clarified that he is not the minister responsible for setting prices, he expressed a desire to engage in informal discussions with both producers and sellers.

Tomas Prouza, the head of the Association of Trade and Tourism, expressed opposition to any state intervention in business matters.

Vyborny emphasized the importance of fair competition in the Czech food market, suggesting that adherence to established rules is crucial. He also noted that the Czech Trade Inspection Authority is the appropriate entity to consider and implement any necessary measures.

Furthermore, Vyborny highlighted the need to ensure that companies’ profit margins remain appropriate within the context of the market.

In late August, Vyborny stated that the government would encourage retail chains to offer more Czech food products.

Prime Minister Petr Fiala had previously addressed concerns about food prices and the profits of food-processing companies in discussions with representatives from the sector. Fiala expressed optimism that when expenses decrease, food prices will follow suit, benefiting citizens.

In July, food prices in the Czech Republic experienced a year-on-year increase of 9.5%. Dana Vecerova, the head of the Czech Federation of the Food and Drink Industries, anticipated that food prices would continue to decrease throughout the year, except for pork.

Additionally, Vyborny expressed an interest in engaging with ministers from other EU member states to discuss the potential harmonization of excise taxes on still wine. He emphasized the importance of finding a solution that ensures Czech wine producers are not disadvantaged compared to their counterparts in Austria, Slovakia, and Germany.

The Czech government’s coalition addressed the taxation of still wine during the preparation of its consolidation package. The Christian Democrats successfully advocated for maintaining a zero excise tax on still wine. However, this decision faced criticism, leading to the formation of a working group comprising government coalition representatives, ministers, and wine producers. The working group held its inaugural meeting recently.

Experts have pointed out that high alcohol consumption in the Czech Republic has significant societal and economic costs, affecting numerous individuals. The state reportedly loses substantial revenues due to alcohol-related issues, including addiction, and the government has been exploring strategies to address this problem.

Article by Prague Forum