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Agricultural Policy Ministry Initiates Regulation Of Bread Market
18.04.2003 "Agro Perspectiva" (Kyiv) - The Ministry of Agricultural Policy is working out a draft of the law on bread and the bakery sector with the aim of regulating the market for baked goods. Agricultural Policy Minister Serhii Ryzhuk disclosed this at a news conference. “We are preparing a draft of the law on bread and the bakery sector,” Ryzhuk said. He added that the Agricultural Policy Ministry, in particular, is going to propose to the Verkhovna Rada (parliament) to restrict the earning capacity of bread production to 15% and also extra trading charge to 15%. In Ryzhuk’s opinion, the regulation of the bread and baked goods market will enable avoidance of price fluctuations for bread and destabilization of the market. As Ukrainian News reported earlier, in connection with a rise in prices for grains and flour in January to February 2003 by more than 20%, bread-baking enterprises began to hike the prices for bread. Presently, the state regional administrations are attempting to prevent a rise in the prices for bread by way of bringing administrative pressure to bear on bread-making plants. Many regions, particular Vinnytsia, have introduced state regulation of prices for bread. In February, prices for bread made from flour of the first grade quality rose in 5 regions by 0.8-23.3% to UAH 1.19-1.71 per kilogram in comparison with January. In January to February, bread production consisted of 320,587 tons, which corresponds to the volumes of production in January to February 2002, when production of bread consisted of 320,831 tons. Bread production in 2002 totaled 2127,584 tons, which is by 4%, or by 88,229 tons less than in 2001. The demand of the domestic market for grains in order to facilitate production of bread and bakery goods consists of 6.3-6.5 million tons. (Ukrainian News)
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