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Kyiv to establish bread prices State regulation
07.06.2007 14:44 "Agro Perspectiva" (Kyiv) —
Kyiv City State Administration has initiated introduction of bread prices State regulation in Kyiv, reported Vasyl Yastrubynskiy, Chief of Main Price Policy Department (Kyiv City State Administration).
«We will once again address Cabinet urging it to commission, at last, Kyiv City Territorial Department of Ukrainian Antimonopoly Committee to sign mutual decision with city municipal authorities on introduction of bread prices State regulation,» declared Yastrubynskiy.
Department Chief emphasized he had many times addressed this proposal to both Ukrainian Antimonopoly Committee as well as its Kyiv City Territorial Department, yet Committee answered there were no economic reasons to raise bread prices and therefore prices State regulation introduction wasn’t necessary.
However, Yastrubynskiy admitted Kyiv City State Administration has no power to regulate bread prices, since, due to current legislation, prices are to be established only by producers up to their mutual agreement with trade network (though by doing so big Kyiv bread producers become market monopolists). He said bread producers may make use of Committee and Kyiv City State Administration present inactiveness in order to raise bread/bakery products prices.
«On background of discussions on this year crop failure, bread prices boom is quite likely to occur, resulting in everyone vehemently trying to prove that everything is being done to overcome prices growth, though now it is quite possible to adopt corresponding decision in a calm, peaceful way in order to prevent possible boom instead of trying to hastily liquidate it afterwards,» recapitulated Yastrubynskiy.
Company Kyivkhlib (Ukrainian biggest bread/bakery products producer) has proposed to Kyiv City State Administration to raise social kinds breads prices (Ukrayinskiy, 1 grade flour Biliy as well as highest grade flour long loaf) by UAH0,20,25 per piece.
As to Agro Perspective earlier report, Ministry of Agrarian Policy had forecasted next few months country bread prices stability due to sufficient internal grains reserves.
However, within May Ukrainian 1 grade flour bread prices had grown in 5 regions shops to UAH2,192,3 per kg (up 0.52.8% against Apr); wheat/rye flour bread prices had risen in 14 regions to UAH1,842,22 per kg (up 1.812.8% as of Apr); highest grade flour bread prices had boosted in 13 regions to UAH2,413,05 per kg (up 0.47.1% as of Apr).
As to Agro Perspective, experts estimate Ukrainian internal market food grain annual requirement 7 mn MT.
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