Noodle 'price rigging' in China
Amid soaring food prices, China's top economic planner has determined that the China branch of the International Ramen Manufacturers Association (IRMA) has illegally fixed prices for instant noodles and sought an explanation.
By PTI |
YINCHUAN: Amid soaring food prices, China's top economic planner has determined that the China branch of the International Ramen Manufacturers Association (IRMA) has illegally fixed prices for instant noodles and sought an explanation.
The IRMA branch had held three meetings of instant noodle manufacturers and related businesses early this year to discuss specific plans to raise prices, the National Development and Reform Commission (NDRC) said.
This constituted collusion and manipulation of the market in violation of the Price Law.
The branch had published a meeting memo and caused panic buying in some cities, which seriously disrupted market order, the NDRC said and has ordered the branch to make a public explanation and invalidate the illegal pricing agreement.
The NDRC is continuing its investigation into the branch.
The price of Ramen, who hold 95 per cent of the market, jumped to 20 per cent on average and some rose up to 40 per cent in July.
The price hike has triggered widespread debate among producers, consumers and experts.
Calling the price hikes as "self-redeeming", Meng Hesu, a senior official with the IRMA branch, said earlier that the price rises were reasonable as raw material prices had risen 20 per cent since last year.
"If we don't lift the prices, there will be no profit," Meng said, adding the profit margin of ramen manufacturers was only two to four per cent.
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