An investigation has been launched in Hungary into allegations that French retailer Auchan's operation in the country has been selling watermelons below their purchase price – an illegal practice in the country.

Zoltan Gogos, state secretary at the national Ministry of Agriculture and Land Development, told a press conference in Budapest that Hungary's Agricultural Dictoral Office had launched the investigation after the fruit and vegetable product council charged the group with lowering prices.

Any potential fine for selling agricultural products for less than the original procurement price is double the difference between the two prices. The council had said that Auchan bought watermelons for €28 and sold them for €21.

Farmers have previously protested against Auchan in Hungary, claiming that the move had forced down procurement prices to a loss making level, MTI reported.

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