NDRC takes issue with price rise on spirits
By Jin Jing |
April 8, 2011, Friday
|
Print Edition
Print Edition
THE National Development and Reform Commission has criticized the recent price increases by domestic distilleries and asked them to maintain stable product prices at least in the first half of this year.
The NDRC's move came as as the central government stepped up efforts to counter inflation and higher food prices, which have driven the consumer price index, a main gauge of inflation, higher.
A notice issued by the China National Association for Liquor and Spirits Circulation said the NDRC has recently held meetings with industrial officials and company executives from breweries, including China Resources, Tsingtao, Yanjing and Budweiser, about controlling prices amid surging raw material costs.
The top economic planning agency said price increases on beer are acceptable but price gains on a wide range of spirits are inappropriate as their costs of raw materials have not been significantly impacted.
In January, Kweizhou Moutai said it would raise its product prices by around 20 percent, the highest increase over the past 10 years. Its move was copied by other major market players including Wuliangye, Jiannanchun and Gujing Group in March. The price increase later spread to beers.
The NDRC has asked distilleries to ensure sufficient market supply and maintain price stability.
Liquor producers are also required to report to the government of any price adjustment and try to minimize the price gains. Price collusion is prohibited, the NDRC warned.
The NDRC also told producers of wine and rice wines to prevent excessive price increases.
In March, Wuliangye informed distributors in Beijing that it would raise the product prices as much as 100 yuan (US$15.3).
The NDRC's move came as as the central government stepped up efforts to counter inflation and higher food prices, which have driven the consumer price index, a main gauge of inflation, higher.
A notice issued by the China National Association for Liquor and Spirits Circulation said the NDRC has recently held meetings with industrial officials and company executives from breweries, including China Resources, Tsingtao, Yanjing and Budweiser, about controlling prices amid surging raw material costs.
The top economic planning agency said price increases on beer are acceptable but price gains on a wide range of spirits are inappropriate as their costs of raw materials have not been significantly impacted.
In January, Kweizhou Moutai said it would raise its product prices by around 20 percent, the highest increase over the past 10 years. Its move was copied by other major market players including Wuliangye, Jiannanchun and Gujing Group in March. The price increase later spread to beers.
The NDRC has asked distilleries to ensure sufficient market supply and maintain price stability.
Liquor producers are also required to report to the government of any price adjustment and try to minimize the price gains. Price collusion is prohibited, the NDRC warned.
The NDRC also told producers of wine and rice wines to prevent excessive price increases.
In March, Wuliangye informed distributors in Beijing that it would raise the product prices as much as 100 yuan (US$15.3).
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
