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 Prices for Major Food Stuff are Likely to Increase

The Government is preparing a draft decree on the exemption of a number of products, including meat, eggs and vegetable oil from state regulation which can lead to a rise in food prices.

According to Kommersant, thus only the prices for the cheapest products will be regulated.

Under the draft decree developed by the Ministry of Economic Development and Trade (MEDT) on amendment of the list of products for which prices are subject to state regulation, the changes are proposed to current regulations of the Cabinet of Ministers N1548 of December 25, 1996 and N1222 from 17 October 2007.

Thus, officials offer to exclude the state price regulation for beef, boneless pork, chicken fillet, meat of any other bird, premium sausages, top grade and selected eggs, and sunflower oil in packaging than PET.

In addition, the MEDT plans to tighten control of the dairy industry. If today only fat cottage cheese to 9%, and 20% sour cream and butter to 72.5% falls under state regulation, the following changes to the current regulations will allow the government to regulate prices for the whole range of these products.

The Ministry noted that the changes are aimed at liberalizing trade in Ukraine. "The Cabinet of Ministers instructed to limit price controls on socially important products. For more expensive products it is offered to drop the price control," the Ministry noted. It is reported that the document had already been agreed in the relevant ministries and departments, and may soon be considered by the government.

It shall be noted that the representatives of the companies whose products may be removed from the list of objects of state price regulation favor the initiative. "Removing artificial barriers will make manufacturers price policy more flexible," said the director of the General Affairs Agromars (the second-largest chicken meat producer in Ukraine), Oleksii Marchenko.

 
 
 
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