Aleksandre Ratishvili, chairman of the Taxpayers’ Union and head of MCB Georgia, supports the government’s planned legislation on unfair trading practices, saying state regulation is necessary to address long-standing problems in the food supply chain.
He said suppliers have often faced unfair conditions from large retail chains, including shelf-placement fees, entry charges and so-called retro-bonuses or cashback payments. Ratishvili argued that suppliers should be treated as equal business partners and that such practices need clear limits to protect local producers.
Another problem, he said, is retailers requiring suppliers to deliver products to every newly opened outlet. Distribution costs can sometimes exceed sales revenue, particularly hurting small and medium-sized businesses. He also criticized the rapid expansion of retail outlets in Tbilisi and the resulting pressure on producers.
Ratishvili stressed that regulating trading practices alone will not solve the challenges facing local industry. He called for cheaper financing, lower interest rates, fewer bureaucratic barriers to building factories, and improved tax and customs legislation. The government plans to submit a bill banning unfair trading practices in the food supply chain to Parliament during the autumn session.
