Food prices will drastically go up if Bulgarian authorities introduce stricter regulations for the FMCG retail chains.

The chairperson of the Modern Retail Association Yordan Mateev suggested that instead of state restrictions, the sector should self-regulate.

Mateev's comments were prompted by the allegations of Prime Minister Plamen Oresharski that the retail chains were involved in VAT fraud and the expected inspections of the National Revenue Agency.

According to Mateev, food prices in France went up by 8% when the state introduced regulations on the supermarket chains, while the deregulation in Germany led to price drops.

"Bulgaria has a Trade Act and the disputes can be solved in court", Mateev said.

He denied the allegations that the retailers treat the Bulgarian and the foreign producers unequally and said that everyone is free to sign contracts at the most advantageous conditions.

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