French president Emmanuel Macron has proposed a legislative change that would see food prices set on the basis of producers’ costs, according to Reuters.
The change is designed to assist farmers, an important constituency in French politics, who have suffered from squeezed margins and the ongoing price war between retailers.
Last year, a third of French farmers earned less than €350 a month, a third of the net minimum wage, according to the Agricultural Mutual Assistance Association (MSA).
“We should allow farmers not to rely on subsidies anymore and therefore ensure that they be paid a fair amount for their work,” Macron said.
The move, which was welcomed by producers, manufacturers and retailers alike, will see the starting price for food set by the seller instead of the manufacturer or retailer, as was previously the case.
However, the president said he had delayed a decision on a proposal made by retailers to raise the minimum retail price they can charge in-store.
That decision would be made at the end of the year, according to Macron, who said he would seek guarantees on boosting farm income and food quality while minimising retail inflation.