1998News

Inespre: unfair competition with colmados

Economists have expressed concern over the new subsidized food sales program being implemented by the Instituto de Estabilización de Precios. The program is said to be politically oriented. While it benefits consumers, it is seriously affecting the profitability of "colmados", small grocery shops, many of which have seen sales drop 30%. INESPRE recently purchased a fleet of 200 vehicles and turned these into mobile grocery shops that visit the barrios to offer their goods at low prices. Economists Eduardo García Michel and Isidoro Santana criticized the new role of Inespre saying that it is using its ability to import goods without paying taxes and then selling at subsidized prices. Private business spokesmen say that this is unfair competition with the colmados, which have to pay taxes.