One day before government’s price control compact with the Social Partnership is due to expire, talks have commenced on extending the measure.
Starcom Network News has learnt that business leaders from the Barbados Chamber of Commerce and top government officials will be having discussions this week on renewing the deal which some leading business figures had previously indicated was unlikely to be extended due to the effect it was having on the finances of the supermarkets and wholesalers.
The six-month deal was agreed in July last year between government, retailers, manufacturers and distributors.
It caps the mark-ups on a list of almost 50 items including canned and dry goods, toiletries and meat products.
A spokesman for the business sector had said the price compact created significant challenges for retailers and distributors because of the significantly reduced mark-ups.
Another key business leader had also told Starcom Network News that while the private sector was unlikely to agree to an extension of the deal, government was expected to put in place other measures to try to keep food prices down.
But with continuing concern among consumers about the cost of living, it appears government has recommenced negotiations in hopes of extending the price compact beyond this month.