EconomyFinancialSupermarkets anticipate better prices thanks to the 'zero tariff'...

Supermarkets anticipate better prices thanks to the 'zero tariff' on food

The National Association of Self-Service and Department Stores (ANTAD), of which chains such as Soriana, La Comer and Chedraui are part, welcomes the measure announced today by the Federal Government to temporarily eliminate tariffs for some products of the basic basket , such as pork, chicken, tuna and beef, among others. “It is positive to improve prices,” said Vicente Yañez, president of the agency at a press conference.

This measure to temporarily eliminate the payment of import duties on twenty basic basket products and six strategic supplies is part of the measures announced in early May by the Federal Government, with the aim of containing the rise in inflation. and whose effects are expected in the following weeks. Currently, inflation stands at 7.68% at an annual rate, almost double the central bank’s target.

The Ministry of Economy published this Monday the details of the relief package of 72 tariff fractions in the Official Gazette of the Federation (DOF). The products benefiting from the tariff exemption are corn oil, rice, tuna, pork, chicken meat, beef, onion, jalapeño pepper, beans, corn flour, wheat flour, eggs, toilet soap, tomato, milk, lemon, white corn, apple, orange, box bread, potato, pasta for soup, sardine, sorghum, wheat and carrot. In addition to live animals of the bovine, porcine, ovine or caprine species, roosters and chickens.

To join the government’s plan to mitigate the inflationary impact, Vicente Yañez added that the chains affiliated with ANTAD have taken measures to lessen the impact of the increase in fuel prices and are in talks with their suppliers to find out how they can align tailored to contain inflation.

The union leader added that where there has been a greater increase in prices is in food, a segment that controls 35.3% of family spending. “And that is why we are working, we are looking at how we can help. It is in everyone’s best interest to lower inflation and with these kinds of efficiencies we will come out faster,” he commented.

Avoid price control

For the president of ANTAD, it is necessary to avoid price controls, like the one the country experienced in the 1970s, when there was famine, product shortages and a black market. Therefore, he reiterated that as long as it is a voluntary agreement, the companies together with the suppliers and producers will agree so that the basket of 24 products is maintained with competitive prices while high prices continue in the global environment.

“We must be very careful that it does not become a price control. Mexico has already experienced it, already suffered it and we already know the consequences. That is why we are working so that it does not happen, so that we can get through this period of high world inflation, so that we are less damaged,” he declared.

The government plan to contain inflation, in addition to a zero tariff for imports of the aforementioned foods, seeks an increase in the production of grains such as corn, beans and rice, as well as agreements with companies such as Gruma, Bimbo, Kimberly Clark, Grupomar and Walmart to avoid increases in some merchandise.

ANTAD asks for fewer regulations for companies

Vicente Yañez explained that in addition to the government’s plan to deal with inflation, which in Mexico has exceeded the increases registered in the last two decades, it is also necessary to reduce regulation and administrative procedures, which would indicate positively in a drop costs for companies.

The representative of the country’s supermarket and department chains announced that there is a commitment by the authorities to review import quotas, reduce costs for companies and carry out administrative simplification, but without detailing the scope that these measures could have.

“In Mexico, according to the OECD, 8% of GDP is spending on paperwork, on regulation. (Deregulate) can help a lot to lower the (operating) cost of companies. It is what we would need to do”, said the ANTAD president during the conference to present the ANTAD Expo, which will be held in Guadalajara, Jalisco, from May 17 to 19.

Yañez reiterated that for this year the companies associated with ANTAD calculate investments of 1,700 million dollars , resources that will be used for remodeling, the opening of new stores, logistics and distribution, as well as digitization. However, the figure could be cut according to the changes in energy matters and the uncertainty for investors, national and foreign.

Will El Buen Fin be able to stop inflation?

If it wants to be successful, the sales season of El Buen Fin 2022 must have very attractive offers and discounts to make Mexicans consume and beat inflation.

Health! Premium tequilas boost sales for the owner of José Cuervo

Becle recorded a 22% increase in sales in the third quarter, driven by higher consumption of tequila outside of Mexico and the United States.

Everything goes up, but Mexicans do not give up their Starbucks coffee or Domino's...

Starbucks and Domino's Pizza remain the restaurant operator's most profitable brands, with revenue growth of 43.3% and 16.5%, respectively.

The drop in copper production impacts the profits of Grupo México

At the same time that its copper production fell 6.6%, it observed a decrease in the price of the mineral of 18.6%

The iPhone saves Apple's revenue, but not enough to completely rid the crisis

Despite having lower sales of its products and services, the company managed to have satisfactory results.

More