![Food industry: Alarm over production costs due to energy](https://www.ot.gr/wp-content/uploads/2022/06/22826338_1o-brokerage-event-i-ereuna-kai-i-kainotomia-to-kleidi-gia-tin-anaptuksi.jpg)
Energy inflation is evolving into a long term crisis, which in our country is 50% higher than in the Eurozone, threatening industry and consumers.
With inflation breaking one record after another and no sign of de-escalation in the foreseeable future, Mr. Ioannis Giotis, president of the Hellenic Food Industries Association (SEVT), in the context of yesterday’s general assembly, stressed that not “only growth but the sustainability of the food industry” is at stake, stating that the effects in the midst of the energy and geopolitical crisis are affecting production, processing, and consumers.
The cost of electricity “will not go down in the next quarter or semester to the extent that it will change the industry’s finances,” said Andreas Siamisis, CEO of Hellenic Petroleum, during the general meeting of SEVT, stressing that This is a “structural problem”, which has nothing to do with the markets or the war in Ukraine.
As he explained, “The energy crisis is a result of the decision taken to move towards a cleaner environment in dealing with the climate crisis, and whether we like it or not, it comes at a cost. At least in the short term, until we reach the needs we have as a country with renewable energy sources on a 24-hour basis.”
“Eventually energy costs will be reduced but not much,” he said.
Reduction of VAT on food
Industry is urging the government to reduce VAT on food, but also to continue supporting businesses against rising energy costs.
The entrepreneurs also pointed out the need to facilitate the import of raw materials with faster control procedures, the immediate activation of the Development Law on investments and to facilitate the absorption of European programs, while emphasizing that there should be protection from unfair practices and at the same time promoting extroversion.
“I’m not responsible”
The request of the industrialists for reduction of the VAT on food products was not answered by the Minister of Rural Development, Giorgos Georgantas, who was present at the open event of the Association, stating that it is not his responsibility, while he expressed skepticism about the performance of this measure.
The government is promoting support measures in the primary sector that will lead to the de-escalation of producer prices, the minister said, adding that this de-escalation will be transferred to processing.
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