President Rosen Plevneliev said he does not expect a long-term positive effect from the price freeze of some staple foods which was agreed between the agriculture ministry and three retail chains last week.
"No such attempt has ever succeeded," the state-run Bulgarian News Agency quoted the president as saying on Wednesday. Prices go down when there is a competitive environment with many suppliers competing, not by agreements with some supermarket chains, he added.
As the global uptrend in agricultural produce and food prices is expected to persist, Bulgaria can position itself to benefit from the situation, according to the president. Instead of exporting wheat, this country can focus on investing in food factories. He underscored the big volume of food imports compared to twenty years ago.
"When the food factories are in Bulgaria, the prime cost of goods will be more reasonable".