Thus
President of the Ukrkondprom Association Oleksandr Baldyniuk commented on the statement of the head
Parliamentary Committee on Finance, tax and customs policy
Danyla Hetmantseva about that, that profile
ministries seem to have reached some agreement with sugar producers and the association
confectioners on the price of this food product.
According to Alexander Baldynyuka, the statement of the head of the committee D. Hetmantsev does not correspond to reality.
The President of Ukrkondprom denied the existence of an agreement on a solution
problems with sugar prices, as the line ministries did not take it into account
the position of food producers in decision-making, and acted mainly in the interests of sugar
industry.
On behalf of Ukrainian food producers
products address you publicly, because we have already exhausted all possibilities
to convince the Ukrainian Government of the need to respond to the threatening situation
in the sugar market.
Today, sugar prices in Ukraine are almost doubled
higher, than on the London Stock Exchange. As of 29 June 2021 year the cost of sugar
white (without VAT) LIFFE FOB (London Stock Exchange) was 432,3 $/t, and the proposal in
Ukraine (without VAT) – 781.2 $/t.
Ukrainian processors live in such a reality
already 10 months. During this time, the price of white sugar in Ukraine is constant
exceeded world prices by 30-40%.
And it's not about global trends of rising prices
on agricultural raw materials. Otherwise, the price of sugar in Ukraine would have risen, but
would be maintained at world prices.
CAUSES
The described price disparities can be explained by three
reasons. This is either a cartel conspiracy, or sugar deficiency, or a combination of the two
the first reasons. We do not rule out, that the third variant is observed at us.
The first reason. 5 April 2021 of the Antimonopoly year
the committee of Ukraine started a case against several sugar companies based on indications
anticompetitive concerted actions on the market of primary sale of white sugar.
The AMCU sees, that these companies by similar actions restricted competition in the market and
were able to raise prices above the competitive level. hope,
that the AMCU will put an end to this
question. However, antitrust investigations sometimes take longer
year, and sugar is needed by the population, and industry today.
Today, 1 July, about 12.30 in the press center of the news agency “Interfax-Ukraine” a video conference of representatives of associations of various processing industries took place, including, of the Association “Ukrkondprom” regarding concerns about the situation with sugar prices. Associations call on the Government to prevent the aggravation of the socio-economic situation due to the forced rise in prices for socially significant food products, in which sugar is used: bakery, dairy, confectionery, ice cream, drinks, etc..
Over the past year, sugar prices
Ukraine has doubled and continues to grow, though, what is its price in
Ukraine on 30-40% exceeds world prices. This has already led to rising social prices
significant food and has led to a deterioration in the situation of processors
food industries, and also led to a decline in the purchasing power of citizens,
increased social tension in society. In the processing industries through
rise in price of raw materials there is a decline in production and sales
products, reducing profitability, what, Consequently, leads to deterioration
the state of industries and the forced reduction of about ten thousand jobs.
16 April 2021 year based on the results of consideration of appeals of the business community, People's Deputy of Ukraine, Chairman of the Subcommittee on Customs Affairs of the Verkhovna Rada Committee on Finance, tax and customs policy, Alexander Sova The third open meeting of participants of the Ukrainian beet and sugar industry with representatives of the Ministry of Economic Development was organized, trade and agriculture of Ukraine, Ministry of Finance of Ukraine, State Customs Service of Ukraine and other executive bodies to discuss problematic issues and find common options and mechanisms for their solution.
In their appeals, representatives of relevant associations of food producers, which contain sugar, expressed concern about the possible risks of destabilizing the sugar market, which has developed in connection with the decline in its production, that caused, including, adverse weather conditions. They noted, that in case of non-interference in the situation, its consequences can negatively affect both the domestic market, and reflect on the decline in exports of such products.
As noted by the Deputy Minister of Economic Development, of Trade and Agriculture of Ukraine Taras Vysotsky, in March, the Ministry of Economy issued import licenses 120 th. tons of raw sugar, and added, that now the Ministry of Economy is considering the issue of issuing licenses for the import of additional in the near future 50 th. tons of raw sugar.
Based on the results of the discussion, a decision was made to prepare and register a draft Law on Amendments to the Customs Code of Ukraine, regarding a temporary reduction to 0% import duty rates on sugar for the period up to September 2021 year under the established quota 120 thousand tons.
This draft law has already been developed by the Ministry of Economy, taking into account the consultations with the representatives of the Verkhovna Rada Committee on Finance, tax and customs policy.
The participants of the meeting agreed, that the import of sugar with the use of such temporary preferential conditions will stabilize the domestic market of sugar and help reduce its retail price in retail chains.
