OREANDA-NEWS. September 20, 2010. The Tatarstan Office of the Federal Antimonopoly Service (FAS Russia) initiated a case against “Koloss” Trading House” Ltd., “Globol-Foods” Ltd. and an individual entrepreneur for violating Part 1 Article 11 of the Federal Law “On Protection of Competition” by exercising actions that lead to fixing and maintaining excessive prices for buckwheat, reported the press-centre of FAS Russia.

In accordance with the Protocol of a meeting at the First Deputy Chairman of the Government of the Russian Federation V. Zubkov, that took place in view of adverse natural and climatic conditions in most Russian regions, FAS Russia must continuously monitor prices for agricultural products and, if necessary, undertake immediate measures of antimonopoly regulation should antimonopoly violations on agricultural and food products markets be revealed.

To exercise the protocol, Tatarstan OFAS Russia verifies if increase of prices for socially important food products is justified. Recent observations have shown increase of prices for peeling buckwheat.

Having investigated the information submitted by retail chains, experts of Tatarstan OFAS Russia established that some buckwheat suppliers considerably increased purchasing prices. In March 2010, purchasing prices of “Koloss” Trading House” Ltd. for buckwheat was 24.96 Rubles per kg, “Koloss” Trading House” Ltd.- 22.5 Rubles, and an individual entrepreneur – 36.25 Rubles. In August suppliers’ prices were 56.27, 55.5 and 53.68 Rubles accordingly.

Such actions of suppliers on the food market that resulted in increase of wholesale ex-works prices for buckwheat have the signs of violating Article 11 of the Federal Law “On Protection of Competition”.

“In the investigated period we observed increasing prices for the raw materials for buckwheat, which producers explain by adverse climatic conditions that caused crops failure”, - says Alexander Grounichev, the Head of Tatarstan OFAS Russia. “In the context of general increase of prices for raw materials, prices for buckwheat go up in all chain segments from producers to consumers; however, in our opinion, it is not proportionate. Following a general tendency to increase prices due to crop failure and panic demand, economic entities that unreasonably raise prices for the goods they sell are convinced that under such circumstances their competitors also follow them and increase their prices to maximize profit. We will suppress such actions and apply heavy sanctions”.

The case is scheduled for 21st September 2010.