"The accusations were made after verifying that these companies failed to comply with the notice to increase production to the highest level of their installed capacity and to arbitrate means at their disposal to ensure transportation and distribution to satisfy demand, established by resolution 100/2020," the Undersecretary of Actions for the Defense of Consumers said in a statement.
The decision aims to tackle a spike in food and hygiene products' prices amid the COVID-19 pandemic. This increment in prices is the main problem that Argentine society has to face today in economic matters," the Minister of Social Development Daniel Arroyo said on Wednesday.
Con los representantes sindicales avanzamos en consensos para coordinar políticas de precios y salarios de acuerdo a las definiciones del Presupuesto 2021. Éste marca la hoja de ruta para la recuperación económica, la mejora del poder adquisitivo y la reducción de la inflación. pic.twitter.com/EbgJ1tGABb
"With union representatives, we are making progress in reaching a consensus to coordinate price and wage policies in accordance with the definitions of the 2021 Budget. This sets the roadmap for economic recovery, the improvement of purchasing power and the reduction of inflation."
The Ministry of Domestic Trade charged the companies Mastellone, Fargo, AGD, Danone, Molinos Cañuelas, Bunge, Molinos Río de la Plata, Unilever, P&G, Paladini, and Potigan.
The report found that these companies were significantly decreasing their production. For instance, "the multinational company Unilever, which manufactures food, cleaning supplies, and personal hygiene, had a fall of almost 100% in its inventory of dressings," the statement highlights.
Moreover, P&G reduced the dispatch of diapers and detergents. The agribusiness enterprise Bunge dropped "its dispatch of packaged oils and a negative variation in flour stocks," among other irregularities.
The Argentine government is fighting inflation of food prices, which is heading towards a 3.5 percent increment by the end of February. The authorities announced a meeting with price trainers in the food sector next week while reinforcing the legal framework to tackle inflation.
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