1998News

Colmados furious about unfair competition

The government refuses to discontinue its Alimentos para Todos food sales program until after the elections. Owners and spokesmen for associations of colmados, or small grocery shops, representing the over 70,000 small grocery stores all around the country, say that the government low cost food sales are unfair competition and should stop now. The Instituto de Estabilizaci?n de Precios, the government department in charge of the program, has offered to discontinue the low cost food sales in 60 days, or after the 16 May election. The businessmen complain that the unfair competition has caused a decline in their sales of about 60%. Housewives prefer to purchase the lower costing food staples from the Inespre suppliers that practically take them the goods to their door or are located near the principal colmados of the neighborhoods. This has also affected colmado product suppliers, that have not been able to place new orders or pay their bills on time. The colmado owners complain that Inespre has opened 72 fixed points that are located near the colmados. Furthermore, the Inespre program includes 400 trucks that sell basic food stuffs at prices lower than at the colmados throughout some 102 neighborhoods in Santo Domingo. The colmados complain that the Inespre vendors do not have the cost structure they do. The Inespre program was begun in January at a cost of RD$135 million and targets low income neighborhoods. The director of Inespre, engineer Gustavo S?nchez says he agrees with the point of view of the colmado owners but that they would not suspend the Inespre sales until after 60 days.