The Undersecretary of Consumer Defense and Commercial Loyalty is planning to conduct new studies on the value chains of some essential products in the basic basket amidst the rapid inflation. The goal is to gather information about the instances in which prices have increased significantly over the past year.
A value chain is a series of activities that add value to a product or service. It helps determine a company’s competitive advantage and allows consumers to understand where the price they are paying for a product comes from. The Undersecretariat plans to begin by analyzing the value chain of basic foods such as oil, rice, and fruits and vegetables.
Private companies have also conducted similar surveys due to food being an item that has seen significant increases above general inflation. According to a recent report from the Chamber of Medium Enterprises (CAME), Agri-food prices multiplied by 3.5 times from field to shelf in December 2023, with taxes making up 25% of the final price of food according to FADA.
Food price increases have had a significant impact on family budgets, especially those with lower incomes who allocate more money towards purchasing these products. Producers have also been affected as they received only $3.5 for every $1 they sold in December 2023. The Undersecretariat aims to provide valuable insights into this issue and help improve consumer protection and commercial loyalty policies within the Ministry of Economy.