Price controls will be extended for six months, and authorities are contemplating including in the list of regulated goods coffee, pasteurized milk, sugar, and oil.
The Price Adjustment Committee has recommended that the 22 products under price regulation be maintained, and that 4 more be included. This is intended to force lowering of prices for the products involved, a measure that has been prolonged for the second time this year.
Jorge Arango, Minister of Agricultural Development, told Panamericaamerica.com.pa that “… the increase in some prices of meat and milk products, solutions for which have not yet been analyzed by businesses, including Industrias Lácteas S.A. (Estrella Azul) and Empresa Panameña de Alimentos (EPA-Bonlac), which sent a notification to the Acodeco between the months of February and March to increase the cost … “.
On the issue of shortage of products in supermarkets, Minister of Trade and Industry, Meliton Arrocha, stated that “… there are many factors which lead to products not being available. He said one reason is that the lowering the price of the product stimulate demand , which makes it sell faster and therefore, it runs out … “.
Source: Panamaamerica.com.pa
It is called the LAW OF DEMAND AND SUPPLY, señor commrade. Did you get your education in Venezuela?
HI Tom,
Price controls continue.
It is always difficult for ignorant governments to remove the stupid price controls they instituted. Why did they think they knew better than the market what the price should be. Id prices are rising, then the best known cure for high prices is higher prices. Such higher prices encourage more supplies while at the saem time reducing demand, thus causing prices to fall after a while. Of course, governments think they can control prices: they obviously cannot. Price controls in fact increase prices on th black market and cause the poorest people to suffer most. The shortages produced by price controls mean that shopers have to spend more of their valuable time looking for supplies, rather than enjoying their life.
A better solution to higher prices is to increase competition by reducing duties and taxes and by eliminating all restrictions on imports.
A road to Colombia would be a huge boon for more variety at lower prices.
The present socialist dummies in government are not likely to understand any of the above.
Regards
Harry
i