Law to Combat Speculation and Hoarding of Basic Food Basket

To establish throughout the national territory, for a period of sixty (60) days, counted from the effective date of this Law, the maximum selling prices of basic basket products detailed below: LIST OF MAXIMUM RETAIL SELLING PRICES FOR BASIC BASKET PRODUCTS PRODUCT | PRESENTATION | MAXIMUM RETAIL SELLING PRICE TO FINAL CONSUMER CEREALS, LEGUMES AND DERIVATIVES | | Lempiras Red Beans | Pound | 14.00 Black Beans | Pound | 13.00 Classified Rice | 350 gram bag | 8.75 Wheat Flour | Pound (bulk) | 7.35 Corn Flour | 2 pounds | 12.85 MEATS AND DERIVATIVES | | Whole Chicken without offal | Pound | 22.55 Whole Chicken with offal | Pound | 20.80 Ground Beef Ordinary | Pound | 22.95 Pork Ribs | Pound | 36.40 Beef Ribs | Pound | 32.00 Pork Cut | Pound | 33.50 Beef Cut | Pound | 35.25 Popular Type Ham | Pound | 26.50 Popular Type Mortadella | Pound | 22.00 DAIRY PRODUCTS, EGGS AND FATS | | Vegetable Shortening | Pound | 13.00 Vegetable Oil | Pound (bulk) | 16.40 Medium Eggs | Unit | 2.00 Reconstituted Pasteurized Milk in Bag | 0.946 liter | 14.20 Natural Whole Pasteurized Milk for* | 0.946 liter | 15.00 Banasupro and Agricultural Fairs | | Natural Whole Pasteurized Milk for Banasupro and Agricultural Fairs | 0.473 liter | 8.00 Natural Whole Pasteurized Milk rest of the country | 0.946 liter | 15.70 Natural Whole Pasteurized Milk rest of the country | 0.473 liter | 8.50 Cream Butter | Pound | 25.00 Fresh Cheese | Pound | 32.60 Quesillo | Pound | 30.65 TUBERS AND VEGETABLES | | Potatoes | Pound | 10.35 Pear Tomato | Pound | 11.00 FRUITS | | Plantains | Unit | 4.00 MISCELLANEOUS PRODUCTS | | Sugar | Pound (bulk) | 5.95 Sugar | 900 grams | 13.20 Tomato Paste | 227 gram sachet | 15.80 Tomato Paste | 113 gram bag | 8.00 SCHOOL SUPPLIES In accordance with the list provided by the State Department of Industry and Commerce (SIC), delivered to the Commission Against Speculation and Hoarding of Basic Basket Products

The State Department of Industry and Commerce, through the General Directorate of Consumer Protection, shall ensure faithful compliance with the provisions of this Decree, and shall impose administrative sanctions in accordance with Article 94 of the Consumer Protection Law against all providers of goods and services of the basic basket who violate this Decree. Likewise, it shall have the collaboration of the Public Ministry, through the Special Prosecution for Consumer Protection and the Elderly, when the non-compliance with this Law gives rise to the presumption of commission of a crime.

For effective compliance with this Decree, the State Department of Industry and Commerce must be supported by all agencies of the Executive Branch, as well as by Municipal Corporations within their respective jurisdictions. The assistance shall consist of the allocation of personnel or logistical resources, such as vehicles, computer equipment, physical space and others. Likewise, in order to achieve control and effectiveness in the application of this law, the National Telecommunications Commission (CONATEL) is instructed to make available a short three (3) digit code at no cost to the consumer so that they have access to all fixed and mobile telecommunications operators, these numbers are at the disposal of the body responsible for compliance with this Law. All operators must install a minimum of 1 E ISDN PRI of 30 channels or alternatively in IP technology, to handle complaint calls from Citizens.

In order for the authorities responsible for applying this Law to have the necessary resources, the State Department of Finance is instructed to immediately make available to the State Department of Industry and Commerce the sum of TEN MILLION LEMPIRAS (L.10,000,000.00), from the current Income and Expenditure Budget of the Republic for Fiscal Year 2010, which sum must be liquidated by this State Department once the effective period of this Law has concluded, and must send a report to the National Congress to evaluate its results.

In order to provide effectiveness and solidity to the work of the State Department of Industry and Commerce in the execution of this Decree, there is created the Inter-Institutional Commission to Combat Speculation and Hoarding of Basic Basket Products. Said Commission shall be comprised of the following officials:

• 1)

  The Secretary of State of Industry and Commerce (SIC), who shall preside over it;

• 2)

  The Secretary of State of Agriculture and Livestock (SAG);

• 3)

  The Manager of the National Supplier of Basic Products (BANASUPRO);

• 4)

  The Manager of the Honduran Institute of Agricultural Marketing (IHMA);

• 5)

  Two (2) representatives of the Honduran Council of Private Enterprise (COHEP);

• 6)

  The President of the Association of Municipalities of Honduras (AHMON);

• 7)

  The President of the Commission for the Defense and Promotion of Competition (CDPC);

• 8)

  The President of the Association for Consumer Protection of Honduras (ASPROCOPH);

• 9)

  The President of the Committee for Defense of Consumers (CODECO);

• 10)

  A Representative of the Peasant Confederations of Honduras; and,

• 11)

  A Representative of the Association of Parents of Families, who shall in turn define who shall represent them on this commission.

The powers of the INTER-INSTITUTIONAL COMMISSION TO COMBAT SPECULATION AND HOARDING OF BASIC BASKET PRODUCTS are the following:

• 1)

  To supervise the setting of prices for basic basket products contained in this Law;

• 2)

  To assess the quality of basic basket products;

• 3)

  To analyze the production costs of the goods listed in this Law;

• 4)

  To issue opinions to the State Department of Industry and Commerce (SIC), regarding the inclusion, exclusion, modification, presentation, quality and price of basic basket products subject to the price-fixing provisions stated in this Decree, and,

• 5)

  And other matters that by their nature are inherent to the Commission.

Once the opinions are issued by the Commission, the State Department of Industry and Commerce (SIC) shall issue the corresponding resolutions.

Corn is excluded from the application of this Decree, due to the existence of an Agreement signed between Producers and Industrialists in which, in order to provide greater stability to the market, the mechanism for fixing the price of said product is determined in advance, linked to the international price set by the Chicago Mercantile Exchange.

If during the effective period of this Decree, corn prices suffer an unjustified increase in the national market, the State Department of Industry and Commerce (SIC), with prior opinion of the INTER-INSTITUTIONAL COMMISSION AGAINST SPECULATION AND HOARDING OF BASIC BASKET PRODUCTS, shall determine the maximum selling price through the issuance of the corresponding Resolution.

With the purpose of supporting and promoting the cultivation of beans by micro and small producers of this grain, the State Department of Agriculture and Livestock (SAG) is instructed to provide these social groups with technical assistance and provide inputs in accordance with the financial capacity of this State Department. Likewise, the Institute of Agricultural Marketing (IHMA), to acquire beans with the aforementioned producing sectors, taking as reference the price cited in this Decree. The Honduran Institute of Agricultural Marketing (IHMA) is also authorized to make purchases of basic grains in order to guarantee strategic reserves or market values in quantities less than one hundred (100) quintals for corn and fifty (50) quintals for beans, with the purpose of supporting and encouraging the micro and small producer, making such purchases based on the reference prices established in this Decree and for subsequent distribution based on current market values. Members of the National Anti-Corruption Council (CNA) must be invited to participate in such purchase action to guarantee the transparency of the process during the period of validity of this Decree. In those situations duly qualified as extraordinary regarding the acquisition and sale of products, the Management of IHMA shall be authorized by the Board of Directors and such special operations shall be ratified by the President of the Council of Ministers.

The Executive Branch is most earnestly urged to call, as soon as possible, the production sectors related to this Decree to discussions in order to achieve the purpose of obtaining fair prices for Basic Basket Products, which reflect the balance between investment, production and forms of commercialization as well as the interests of consumers, an aspect that is determinant for the social tranquility of the country.

This Decree shall enter into force as of the day of its publication in the Official Newspaper "La Gaceta". Given in the city of Tegucigalpa, municipality of the Central District, in the Hall of Sessions of the National Congress, on the sixteenth day of the month of November of two thousand ten. LENA KARYN GUTIÉRREZ AREVALO PRESIDENT RIGOBERTO CHANG CASTILLO FIRST SECRETARY GLADIS AURORA LÓPEZ CALDERÓN SECRETARY To the Executive Branch. Therefore: Execute. Tegucigalpa, M.D.C., November 18, 2010. PORFIRIO LOBO SOSA PRESIDENT OF THE REPUBLIC The Secretary of State of Industry and Commerce. JUAN JOSE CRUZ