December 20, 2017 / 12:59 PM / a year ago

France to raise minimum food prices, limit bargain sales -sources

PARIS, Dec 20 (Reuters) - France will announce on Thursday a plan to raise regulated minimum food prices and limit bargain sales in supermarkets as part of a wider field-to-fork plan aimed at increasing farmers’ income, two sources close to the matter said on Wednesday.

The measures are part of a wider review promised by President Emmanuel Macron to appease farmers, an important constituency in French politics, who have long complained of being hit by squeezed margins and a retail price war.

In October Macron said the government would raise minimum prices retailers can charge on food products only if each sector proposes detailed organisation plans by the end of the year, which they did earlier this week.

Retailers had called for a rise in the minimum sales prices of all products, not just food, saying it would benefit those lower down the supply chain.

The latest proposal on the table points to a rise of 10 percent in the minimum price a retailer can charge for a food product, while prices on promotional offers could not be discounted by more than 34 percent and no more than 25 percent of a product’s volume could be sold in a promotional offer, daily Le Figaro said on Wednesday.

Sources stressed the proposal was one of many others, and that different numbers were still circulating among participants and that the final decision had not been made.

Some of the proposals included raising the threshold of resale at a loss by as much as 15 percent, but no higher, one source said.

Reporting by Sybille de La Hamaide; Editing by Dominique Vidalon and Susan Fenton

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