Honduras: Objections to Price Controls

The private sector is opposed to the government's decision to freeze prices of 19 products until April 21.

Wednesday, March 25, 2015

Private sector representatives in northern Honduras argue that this measure will cause shortages of the 19 products most in demand in the holiday season.

Emin Abufele, president of the Chamber of Commerce and Industries of Cortés, told Laprensa.hn that "... The people who make these decisions have to be well trained. Taking a measure like this shows ignorance of how the economy works. "

"... Through a decree it was determined that prices would be freezed for products such as chicken, fish of various kinds, crab, sardines and fillets. The measure is valid until 21 April. "

More on this topic

Price Controls Proposed in Honduras

December 2014

The private sector is opposed to the government's proposal to freeze prices for a group of consumer products.

Employers propose replacing the price freeze measure with the establishment of a suggested price for products that are included in the basic basket and the further strengthening inspection measures at points of sales, so that prices remain stable.

The Risks of Price Control Decrees

October 2011

Any measure that seeks to control the price of any product will generate shortages, black markets and real increases in prices.

A statement from the Chamber of Commerce and Industry of El Salvador reads:

The Chamber of Commerce and Industry is calling on the authorities to consider that in El Salvador economic relations are governed by the free market system, which requires free prices, free competition and full legal certainty, and that state intervention is only legitimate when it seeks to avoid distortions that affect the free market, such as monopolies, unfair competition, systems of privilege and general subsidies, but not to regulate, arbitrarily, the prices of products and services.

Honduras Discussing Postponement of Price Freeze

January 2011

The Government looks to extend the decree which froze prices of basic goods until January 19, 2011.

The head of the Ministry of Industry and Commerce (SIC), Juan José Cruz, said he had evidence that price speculation in the Honduran market is still present, so he does not rule out the extension of the decree," reports Digital Process.

Honduran government freezes prices.

November 2008

The government is analyzing the maximum price of 30 products in the basic basket.

The Minister of Industry and Commerce, Fredi Cerrato, said yesterday that "The Consumer Protection Law authorizes price freezes by means of a Ministry Resolution, and that the freeze applies to the maximum price."

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