Russian lawmakers have proposed limiting retail markups on essential food items to 15%, similar to Soviet-era measures. The draft bill, already supported by the agrarian committee, would cap markups on milk, meat, and bread. Wholesale companies would be restricted to a maximum of 5%.
The bill's authors argue that, for example, milk from producers currently costs 22-29 rubles, but is sold in shops for three times that amount. However, analysts warn that similar measures in the Soviet Union resulted in product shortages, since state-imposed pricing fails to account for market dynamics.
Experts stress that price caps disrupt the balance of supply and demand. With high inflation, expensive credit, and labor shortages, these measures could lead to retailer losses, empty shelves, and reduced product quality.
Proponents of the law cite the sales growth of major chains as evidence of excessive profits, but experts attribute this to inflation, business expansion, and rising costs. If price controls are enacted, likely outcomes include product shortages, long lines, and black market activity.
The Soviet case demonstrates that markets, rather than administrative controls, are most effective in regulating prices and demand.
