Why are businessmen against price controls and what do they propose?

Why are businessmen against price controls and what do they propose?

You can “contain prices slightly because you don’t see the market conditions, and we don’t control that. The foreign market, the climate issue, the issue of the war that is not defined and also continues to increase the costs of fertilizers for producers, who are already going to sow the spring-summer harvest, which is the largest in Mexico,” he said. recently Juan Carlos Anaya, director of the Agricultural Markets Consulting Group, to Expansion.

President López Obrador announced that there will be guaranteed prices, but not price controls, although he did not specify what the new policy that he will announce on Wednesday will consist of. And, far from confronting the business sector, he assured that there has been a dialogue with the private sector to achieve this goal.

The containment could come through not increasing the price of electricity for companies, continuing to subsidize the price of fuels -including diesel, one of the most used for cargo transport- and even with support for food producers and the peasants, for the acquisition of fertilizers.

That is to say, a price containment does not try to solve inflation by decree, but it would try to alleviate the pressures on the costs of companies and producers, both large and small.

However, there is still the question of what the pact with the distribution companies consists of so as not to raise the prices of the basic basket products any more and establish a single ‘fair price’ in all the states of the country.

Meanwhile, Bimbo has already confirmed that it is participating in talks with the federal government to avoid further increases in the price of white bread.

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