French Finance Minister Bruno Le Maire has announced plans to increase checks on major French and European retailers to ensure they comply with a law aimed at securing fair prices for French farmers. The move comes as France aims to curb farmer discontent. The country's farmers, who make up the largest agricultural sector in the EU, claim they are underpaid and that government and retailer efforts to reduce food inflation have left many unable to cover costs.
In an interview with French radio CNews/Europe 1, Le Maire revealed plans to conduct 500 checks on five major retailers to ensure compliance with the EGALIM law, which is designed to guarantee fair farm-gate prices. He also plans to conduct specific checks on European retail purchasing alliances in relation to EGALIM.
Le Maire warned that France would impose fines of up to 2% of revenues on food retail companies failing to provide French farmers with fair prices under the EGALIM law. He also revealed that formal requests had been sent to "four industrial groups" suspected of non-compliance with the law, adding that "if we are proven right, they will be heavily sanctioned on up to 2% of their revenue."
Source: reuters.com