Wednesday, October 24, 2007

Italian Pasta Makers: Under Investigation for Price Fixing

This title has nothing to do with Chinese law, but it does resemble a previous post here on noodle price fixing in China.

According to a BBC report, the Italian authorities have initiated an investigation into suspected price collusion on pasta by Italian pasta makers. Microscope has been placed on the “members of the Industrial Union of Pasta Makers, which represents about 85% of the market, [allegedly] colluded to fix the price of spaghetti, fettuccine and other favourite pasta dishes.” A sharp rise of about 20% in pasta price and angry consumer reactions to the price surge prompted the government to take regulatory action.

Responding to suspected price collusion, the pasta makers blame rising cost of durum wheat for the surge of price in pasta. Ramen noodle makers in China presented similar arguments while under investigation for price fixing, claiming that rising cost of flour and cooking oil was to blame.

Never thought a low profile food like noodles could be in the spot light like this, in China and Italy.

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