Reducing VAT on fruits and vegetables, supporting domestic production, and forming strategic reserves are some of the measures that could lead to lower prices for basic food items, according to experts interviewed by RTCG’s Daily. They emphasize that achieving lower prices can only be done through discussions at all levels and concrete actions.
Due to the rising food prices, it is becoming increasingly difficult for Montenegrin citizens to fill their shopping bags. Although trade unions and civil activists have called for a boycott of retail chains to limit the power of large supermarkets, the government has partially supported this and continued last year’s initiative “Limited Prices” for essential food items—yet the wave of price increases persists.
Deeper changes are needed.
“Reducing the VAT rate on fruits and vegetables, that would be very positively received. We need to take more measures to boost domestic production, to encourage people to engage in long-term production. This is the best way to ensure we maintain a stable and sustainable quality,” said Slobodan Mikavica from the Union of Employers of Montenegro.
“Whether it’s reducing margins or setting single-digit margins for essential goods such as flour, oil, sugar, milk, etc., or making these margins transparent in stores, or whether it’s about VAT refunds, either partially or fully for vulnerable groups in society,” said Olivera Vukajlović, advisor to the president for sustainable development.
Support for domestic production is particularly important, according to the experts.
“Improving opportunities for our agricultural producers to sell their products, whether through the formation of distribution centers or shorter supply chains,” Vukajlović added.
Mikavica stressed that strengthening domestic production may require more than just subsidies or VAT reductions.
“There are a number of measures that may be even more important for sustainability,” Mikavica noted.
According to Mikavica, it is up to the retail chains to recognize that only by maintaining fair and transparent relations with consumers can they ensure a better position in the market and long-term protection from competition.
The solution, he says, can only be found through dialogue and concrete measures.
As for how the average Montenegrin citizen will manage to fill their shopping bags during these price hikes, and when lower prices will become a reality, that remains uncertain.
