OREANDA-NEWS. March 04, 2011. The Commission of the Office of the Federal Antimonopoly Service in the Republic of Tatarstan (Tatarstan OFAS Russia) found that “PiK” Trading Company” Ltd., “Bakhtle-1” Ltd., “Optovik” Ltd., “Tander” CJSC, “Perekryostok” Trading House” CJSC, “Camilla” Trading House” Ltd., “Chelny-Khleb Trading House” Ltd., “Gorlyukha” Ltd. and “Dyslyk” Trading House” Ltd. violated Clause 1 Part 1 Article 11 of the Federal Law “On Protection of Competition”. Trade networks in Kazan and Naberezhnie Chelny fixed and maintained retial mark-ups for buckwheat in a concerted manner, reported the press-centre of FAS Russia.

The Commission of Tatarstan OFAS Russia established that in August – October 2010 the trade networks simultaneously increased retail mark-ups for buckwheat. In June – August 2010 the wholesale ex-works prices for buckwheat increased by 2-3 times more that the mark-ups set in June – July 2010.

In spite of adverse climatic conditions, the trade networks failed to undertake measures to regulate mark-ups for buckwheat to maintain competitive retail prices. The trade networks were informed by buckwheat suppliers about general increase of wholesale ex-works prices and were convinced that other trading companies also would not decrease their mark-ups in order to gain unjustified profit.

The Commission of Tatarstan OFAS Russia issued determinations to the trade networks to reduce their mark-ups for buckwheat to the economically justified level. OFAS will also initiate administrative proceedings against the trade networks. The violators can be fined up to 15% of their income in the year preceding the violation.

“Any increase of incoming prices for food products, like buckwheat, chicken eggs or something else cannot affect the distribution costs of this product by a trade network”, Deputy Head of Tatarstan OFAS Russia Ivan Scherbakov commented on the OFAS decision. “Whatever expenses the trade network had for distribution of this product, they remained unchanged regardless of the increased incoming price of these goods. Our principal standpoint is that changes in the wholesale market must not lead to increase of retail mark-ups for the goods”.