The chairman of the Agricultural Lobby in the Knesset, MK Zevulun Kalfa (Jewish Home), has submitted to the Knesset a bill for price control of marketing margins in fruits and vegetables; Mr. Kalfa will lead the bill in cooperation with MKs Yitzhak Vaknin (Shas), Itzik Shmully (Avodah), Omer Bar-Lev (Avodah) and Adi Kol (Yesh Atid).
The bill, which was initiated in cooperation between consumers and agriculturists through the Israel Consumer Council and the Israel Farmers Association, will allow fair prices to the consumer so that all citizens of Israel may enjoy fresh products from Israeli agriculture. The bill will reduce the marketing margin between agriculturists and retailers, that could dictate the supply and demand as well as the high price level for the consumer and the low price level for the farmer.
89% of the public perceive that prices of agricultural products are too high. A previous survey commissioned by the Consumer Council (December 2013), revealed that 46% of consumers will reduce fruits and vegetables consumption if their price increase by 20%, while in case of a 50% increase, 67% will reduce the quantity of basic vegetables they will buy and 72 % (!) will reduce the amount of basic fruits they will purchase.
Consumer Council CEO, Adv. Ehud Peleg says that the proposal would put an end to high profit margins discriminating both farmers and consumers. When there is no self-restraint, external restraint is necessary in order to ensure fair market of fruits and vegetables in Israel.
Farmers Association President, Mr. Dubby Amitaï: "In recent years, the brokerage links in the marketing chain mainly led by large retail chains, have lost all control and consumer prices have soared to a gap of hundreds percent from price to agriculturists. The bill will put an end to the retailers' piggery at the expense of the consumer and the cultivator alike."