Linnik did not see the strategic benefit of freezing food prices

Freezing food prices in general does not provide any strategic benefit, Miratorg President Viktor Linnik said in an interview with RBC TV.

“In this case, this is a tactical decision, [it] is connected with the covid situation, with force majeure,” he said.

However, if the motivation of producers is “hardly limited”, they will not have an incentive to modernize, continued the HEAD of Miratorg. As a solution to the problem, he proposed supporting sections of the population "who really need to be helped," for example, through "various food certificates."

“And those who must work and must be motivated, must earn money, not sit on the neck of the state or anyone, respectively, such an opportunity should be left to him. And when you begin to strictly regulate prices - for the same sunflower oil throughout the chain, there will be no motive to develop there. There will not be just a product, we will return to the good Soviet times at the level of “you give me - I give you,” he said.

At the same time, Linnik noted that he understands the reason why they introduced a freeze on food prices. “But, it seems to me, we need to make adjustments - the sooner the better, to concentrate all the same on increasing the income of the population, helping social strata who need it. Accordingly, the business must work, earn,” he believes.

In December 2020, President Vladimir Putin criticized rising food prices, including SUGAR and sunflower oil. After that, the government set a fixed price for them - no more than 36 rubles. in wholesale and 46 rubles. in retail for sugar, as well as no more than 95 rubles. per liter of sunflower oil in wholesale and not more than 110 rubles. in retail. Initially, the agreement with producers and retail chains was to be valid until April 1, but later it was extended: for sugar - until June 1, for sunflower oil - until October 1.