Cabinet approves committee to lower food import prices

PM: Retail market is a "cartel" that needs to open to competition.

By
January 13, 2014 13:13
1 minute read.
ISRAELIS SHOP at a Jerusalem supermarket. Overall, we’re happy with our lot.

ISRAELIS SHOP at a Jerusalem supermarket. 370. (photo credit: Marc Israel Sellem/The Jerusalem Post)

 
X

Dear Reader,
As you can imagine, more people are reading The Jerusalem Post than ever before. Nevertheless, traditional business models are no longer sustainable and high-quality publications, like ours, are being forced to look for new ways to keep going. Unlike many other news organizations, we have not put up a paywall. We want to keep our journalism open and accessible and be able to keep providing you with news and analyses from the frontlines of Israel, the Middle East and the Jewish World.

As one of our loyal readers, we ask you to be our partner.

For $5 a month you will receive access to the following:

  • A user uxperience almost completely free of ads
  • Access to our Premium Section and our monthly magazine to learn Hebrew, Ivrit
  • Content from the award-winning Jerusalem Repor
  • A brand new ePaper featuring the daily newspaper as it appears in print in Israel

Help us grow and continue telling Israel’s story to the world.

Thank you,

Ronit Hasin-Hochman, CEO, Jerusalem Post Group
Yaakov Katz, Editor-in-Chief

UPGRADE YOUR JPOST EXPERIENCE FOR 5$ PER MONTH Show me later Don't show it again

The cabinet on Sunday approved the creation of a committee on bringing down food prices by advancing “parallel imports,” or cheaper imports of products already available on the shelves.


“There is an unacceptable phenomenon of historic arrangements that are causing an increase in food prices and consumer exploitation,” Prime Minister Binyamin Netanyahu said at the meeting. “Without opening up the markets to imports, there will not be a reduction in food prices.”


Be the first to know - Join our Facebook page.


Israel’s food prices have soared from 10 percent below the OECD (Organization for Economic Cooperation and Development) average in 2004 to 25% above it in 2013. 


A Knesset study released last week found that while the cost of food went up just 1.8% in the EU from 2005-13, in Israel it rose 16%. In all the food categories, only fruits and vegetables were found to be cheaper in Israel.


Citing a Finance Ministry study that found two chains dominating some 60% of the retail market, Netanyahu called the retail market a “cartel” that needs to open to competition. 


“The meaning of this statistic is that there is no competition,” he said. Reducing import barriers, he said, would help the problem.


The committee is to be headed by Prime Minister’s Office director-general Harel Locker.


Related Content

The Teva Pharmaceutical Industries
April 30, 2015
Teva doubles down on Mylan, despite rejection

By GLOBES, NIV ELIS