Watermelon Prices Fuel Debate

Karsai lambasted Auchan for offering discounted melons for as little as Ft49 ($0.3) per kilo, while, according to the farmers, production costs are around Ft30 ($0.2). 

Karsai, who was later accused of speaking for only a few producers, and not for the industry as a whole, threatened Auchan with a blocade of each store that wants to pay less than Ft30 for a kilo of wholesale watermelon. 

The price was, at first, deemed unreal by the retailer, but later the parties managed to temporize with the Ft30 price.

The debate also ignited an investigation by the Central Agricultural Office, which ruled Auchan was violating agricultural regulations with its discount action. The French retail chain, is expected to be fined up to several tens of millions of forints as a result.

“We need an immediate amendment of the agricultural bill, in order to ensure that the black economy is tackled in the agriculural segment as well,” Karsai told a news conference after his negotiations with the farmers. The government will discuss his proposal next week."

Source: Budapest Sun