By Dominique Vidalon
PARIS (Reuters) - Finance Minister Bruno Le Maire said on Wednesday he would step up checks on big French and European retailers to ensure they pay French farmers fairly under a law designed to safeguard farm-gate prices, as France seeks to quell farmer unrest.
Farmers in France, the EU's biggest agricultural producer, argue they are not being paid enough and that a push by the government and retailers to bring down food inflation has left many producers unable to cover costs.
The government has notably demanded retailers and suppliers finish annual price negotiations by Jan. 31, two months earlier than usual, as part of its drive to lower consumer prices.
Le Maire said in an interview with French radio CNews/Europe 1, that he will launch 500 checks on five big retailers to check if they comply with the so-called EGALIM law designed to guarantee fair prices at the farm-gate, which protesting farmers say is poorly enforced.
Le Maire added that he will also launch specific checks on European retail purchasing alliances over EGALIM.
Last week, Le Maire had announced France would impose fines of up to 2% of revenues on food retail companies that do not give French farmers fair prices under the EGALIM law.
Le Maire said on Wednesday his services had sent formal requests to "four industrial groups" who were suspected of not complying with the law.
"If we are proven right, they will be heavily sanctioned on up to 2% of their revenue," Le Maire said, declining to name the groups in question.
Preliminary figures from the national statistics agency INSEE on Wednesday showed EU-harmonised prices in France rose by 3.4% in January when compared to the same month a year earlier, but marking a slowdown from the 4.1% figure recorded for December.
"I made the commitment that inflation would decrease rapidly at the start of 2024; it will be the case," Le Maire told CNews/Europe 1.
(Reporting by Dominque Vidalon, Charlotte Van Campenhout, Editing by William Maclean)
