The state authorities explored new measures to reduce food prices, but after a lengthy session that included representatives from supermarkets, distribution channels, industry groups, and the primary sector, no concrete proposals emerged. The minister of Agriculture, Fisheries and Food, Louis Planas, indicated there was reason to reflect on current costs and acknowledged that the consumer price index for food had peaked. He emphasized that the discussion produced a sense of positive movement in production costs, yet left the chain without firm commitments and called for all links to assess the prices paid by citizens.
Planas described the gathering as a special consultation focused on the costs of production, noting that the root of rising food prices lies in the transmission of higher costs through the value chain. He highlighted that employers in the first link, represented by COAG and Asaja, did not fully endorse the idea that production costs had decreased enough to justify immediate price reductions. He stated that there is no confirmation yet of a downward shift in production costs that would allow a clear reduction in consumer prices.
The minister did not delve deeper into the possibility of a VAT cut on meat and fish, a measure proposed by industry associations, while the government indicated it was monitoring the situation. He said that actions taken in December were appropriate and urged patience and steady resolve, warning that aid to productive sectors carries budgetary implications and must be weighed against overall price stability.
Print from Podemos
The housing wing of the government criticized Planas for engaging with large supermarket chains, arguing that a solution should not align with the interests of those who face problems in the market. The national spokesperson for Podemos, Pablo Fernández, asserted that intervention in the public market could be a tool to curb excessive pricing, insisting that it is not acceptable to allow looters and profiteers to continue to extract large margins. This stance echoed proposals put forward by Yolanda Díaz in December.
The Socialist Party, PSOE, has rejected limits on staple foods, while Podemos has put forward a proposal for a broad price relief measure. The government could consider a 14.4% discount on basic products to bring prices back toward pre-crisis levels. This approach would be similar to the model used for fuels in the previous year. Fernández indicated openness to negotiations with PSOE on this proposal. When asked about the plan, Planas warned that addressing food price pressures is not as straightforward as energy policy. He stressed that the situation requires careful analysis of all potential scenarios and a sustained political will to implement measures that are effective and affordable. The minister underscored that the path forward would involve evaluating all options and maintaining a measured pace while keeping long-term price stability in view.