UPDATE 2: X5 says suppliers boost sugar, grits prices by 10%, 5%

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MOSCOW, Mar 19 (PRIME) -- Demand for grits and preserves in Moscow fell on Wednesday but suppliers boosted the prices for sugar and grits by 10% and 5% respectively, an official of X5 Retail Group told PRIME on Thursday.

"We see a problem with certain groups of socially important products: firstly sugar, grits, rice, buckwheat. Sugar prices have already risen by 10%, the grits prices grow by 5%. We have not raised prices in the stores and have no such plans since we understand that we have social responsibility as well," the official said, adding that the stocks of food bought at the pre-crisis prices will end at the beginning of April.

The official asked the antitrust to control supplier prices.

Industry and Trade Minister Denis Manturov said that Russian retailers have enough food for at least two months.

"The only thing I can say is that (the retailers) purchased food for reserves for at least two months. The Agriculture Ministry and us are working with suppliers on a daily basis in order to prevent any disruptions, first of all in the logistic centers," Manturov told reporters during a visit to a plant producing sanitizers under the Sanitelle brand.

Russian retailers reported earlier in March that demand for first priority goods surged amid the coronavirus. On Wednesday, representatives of retailers and the Industry and Trade Ministry said that the peak of demand had been left behind.

Manturov said on Thursday that the situation with antiseptic availability would improve by March 23. The Russian industry is able to cover the current needs fully.

The Federal Tax Service is monitoring the price increase by online cash registers. "Concerning the Federal Tax Service, they are involved in this work as well to be able to monitor the cash registers online, the price for 47 items which we’ve set aside. These are food items and other socially important products," he said.

Deputy Director of the Federal Antimonopoly Service Andrei Tsarikovsky expects that panic demand will decline soon. "I think this situation will literally disappear in some time because judging by experience, people tend to calm down after some time," he said.

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