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The Cabinet has reduced a minimum price for sugar
18.10.2012 13:44 "Agro Perspectiva" (Kyiv) —
The Government has made changes in addition to the Resolution of Cabinet of Ministers of Ukraine dated April 11, 2012 № 290 on state regulation of production of sugar and sugar beets, Government Portal reports. The corresponding resolution № 945, developed by the Ministry of Economic Development, the Cabinet of Ministers has adopted October 17, 2012.
The main purpose of the document is to reduce the minimal prices for sugar in the season 2012/2013 due to changes in market conjuncture of sugar.
To date, in the domestic market there is a sharp growth in the supply of sugar, which is due to its high transition remains at the beginning of 2012/2013 marketing year (648 tons that exceeds four months needs) entering into the market of sugar beet new crop which is expected this season within the limits of 1800 thousand tons. These factors lead to the fact that the prices of sugar demand in September and October of this year are still well below the established minimum level, i.e. a number of sugar producers are hostage to situation where they are unable to realize their goods at market prices without violating laws that further entails imposition penalties to them.
Therefore, the Ministry of Economic Development proposes to reduce the minimum wholesale selling price of sugar for 2012/2013 marketing period from UAH 5910 to UAH 4900 per ton, taking into account the possibility of further price declines in the market.
Adoption of this resolution will provide an opportunity sugar mills to sell sugar at market prices without violating the law and facilitate the development of competition in the sugar market.
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