French Bill Advances Food Price Deadline to Mid-January, According to Reuters

PARIS (Reuters) – Food retailers and producers in France will need to conclude their annual price negotiations by January 15, moving up the deadline from the traditional March 1 date, according to a bill that the French government plans to present to parliament on Wednesday.

Unlike many other countries, where retailers and producers frequently adjust prices of food and various products, French law allows for a limited three-month period for these negotiations, typically occurring from December 1 to March 1 each year.

This year, an average price increase of 10% has resulted in sustained high prices in French supermarkets, even as global food commodity prices have decreased. As a consequence, consumers have begun to reduce their purchases, prompting the government to exert pressure on retailers and producers to lower prices.

In an effort to facilitate quicker reductions in prices for consumers, the government’s proposed bill aims to advance the 2024 deadline to January 15. A source from the finance ministry noted that some companies had already begun negotiations prior to the bill’s introduction, following Finance Minister Bruno Le Maire’s announcement at the end of August regarding the new deadline.

The bill applies to companies with French sales of at least 150 million euros or 1 billion euros on a consolidated basis, effectively targeting 75 of the largest food producers responsible for over half of supermarket sales in France.

Additionally, French retailers Carrefour and E-Leclerc announced they would sell fuel at cost price, responding to governmental pressure to lower pump prices amid a recent surge in global fuel costs.