Algeria issues regulations to set price ceilings and profit margins for imported coffee

Accordingly, the Algerian Government issued Decree 24-279 dated August 20, 2024 to set ceiling prices and profit margins for imported coffee. This decision is not only aimed at controlling prices but also protecting the interests of consumers in the context of rising global coffee prices.

According to Article 2 of the Decree, the price of coffee consumed in the Algerian market is clearly determined. Specifically, 1 kg of green, roasted or ground Arabica coffee has a maximum price of 1,250 Algerian dinars (equivalent to about 9.45 USD), while the price of Robusta coffee is limited to 1,000 Algerian dinars (7.56 USD). This regulation shows the Government's efforts to control the price of this essential commodity, especially when coffee prices are on an upward trend in the international market.

The Algerian government has issued Decree 24-279 to impose price ceilings and profit margins on imported coffee.

The Decree also specifies the maximum profit margin for coffee import and processing activities. Specifically, the profit margin for importing green coffee beans and reselling them in their original state is only allowed to be a maximum of 3% (Article 3). For products processed from imported green coffee beans, the maximum profit margin is set at 4% (Article 4). These regulations aim to ensure that businesses cannot unreasonably increase selling prices, thereby protecting the interests of consumers.

To ensure transparency and fairness in the market, the Ministry of Trade and Export Promotion will periodically publish reference prices for green coffee beans on its official websites and other media. This will help businesses easily compare and adjust their purchasing prices according to regulations (Article 5). In this way, the authorities can monitor the price situation more effectively, preventing uncontrolled price increases.

A notable point in the Decree is the provision on supporting businesses in case the price of imported coffee exceeds the reference price. If this happens, businesses have the right to submit a subsidy application to the Clearing Committee (Article 14). If the documents are valid, businesses will receive a compensation from the state budget. This not only helps businesses maintain the set consumption price but also protects the interests of domestic consumers.

The Algerian government’s new regulations demonstrate its commitment to controlling the prices of an essential commodity such as coffee, and reflect the government’s efforts to maintain a balance between business profits and consumer interests. By implementing these measures, Algeria hopes to stabilize the coffee market, making it easier for consumers to access this commodity at reasonable prices.

The Algerian government is facing significant challenges in balancing economic development and consumer protection. However, the measures taken by the government demonstrate its determination to create a fair and transparent business environment while ensuring stability in the domestic coffee market. This is an important step not only for the coffee industry but also for the Algerian economy in the context of complicated commodity prices around the world.

Source: https://congthuong.vn/algeria-ban-hanh-quy-dinh-nham-thiet-lap-gia-tran-va-bien-do-loi-nhuan-doi-voi-ca-phe-nhap-khau-348346.html