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Ministry of Agrarian Policy proposes to Cabinet establishing sugar minimal prices moratorium until Sept
12.02.2007 10:00 "Agro Perspectiva" (Kyiv) —
As to Cabinet draft Decree «About Bringing Changes to Cabinet Decree № 171 from Feb 20, 2006» (published on Ministry of Agrarian Policy official website), Ministry of Agrarian Policy has proposed to Cabinet to introduce sugar minimal prices moratorium until this year Sept 1 in order to assure sugar plants stable functioning/financial condition as well as prevent plants penal sanctions. As of now, sugar plants sell sugar UAH2,1002,400 per MT (under condition of current minimal price UAH2,850 per MT). However, plants pay sales taxes equal to minimal prices sales taxes. Thus, if minimal prices system remains, a number of plants are possible to go bankrupt. As to Agro Perspective earlier report, National Sugar Producers Association Ukrtsukor considers it necessary to introduce sugar minimal prices moratorium to assure sugar market participants stable work. As to Agro Perspective earlier report, 2006/07 MY sugar minimal price is UAH2,375 per MT (VAT excl.). Experts estimate domestic sugar market annual capacity 2.2 mn MT.
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