REGARDING THE DRAFT LAW ON THE SUPPLY CHAIN OF AGRICULTURAL PRODUCTS AND FOOD

The Bulgarian Industrial Association (BIA) has expressed serious concerns regarding the Draft Law on the Supply Chain of Agricultural Products and Food. While supporting the law’s goals of promoting a sustainable and transparent supply chain, the BIA warns that the proposed mechanisms—such as mandatory minimum and maximum markups for producers, processors, and traders—risk distorting the market, increasing consumer prices, and limiting competition. The draft law fails to account for sector-specific characteristics, the dynamics of the agri-food market, and existing EU regulations on free pricing and fair competition. Additionally, requirements for detailed cost calculations, administrative reporting, and limitations on promotional campaigns create significant operational burdens for businesses, particularly small and medium-sized enterprises.

The BIA also highlights that restrictions on import markups, quotas for Bulgarian products, and prolonged state-imposed price controls may undermine market access, violate EU trade principles, and favor certain domestic producers at the expense of others. The draft law’s overregulation and extensive enforcement powers assigned to the Consumer Protection Commission could generate legal uncertainty, conflicts of mandates, and administrative arbitrariness. Overall, while the law’s objectives—supporting local production, ensuring supply chain stability, and preventing unfair practices—are understandable, the BIA considers the proposed measures disproportionate, economically risky, and potentially harmful to both the competitive environment and the broader market.