Ukraine plans to cancel state regulation of prices for social products

Ministry of economy and trade planning at the state level to cancel the August 15, regulation of prices for socially important products. They lifted restrictions of trade margins for flour and selected products, cereals, certain breads, sugar, beef, pork and poultry, sausages, eggs, sunflower oil, milk, cheese, sour cream and butter.

By 15 November will be monitoring prices on the food market, and then within a month, the final decision regarding the possibility of a resumption of full or partial cancellation of the restriction of state regulation of prices.

This procedure is spelled out in the draft Cabinet of Ministers resolution "On the pilot project on pricing of goods and services in the field of production and sale of food products", which was developed by specialists of the Ministry of economic development. In an accompanying note to the document stated that its implementation will help to identify the actual impact of government regulation on the formation of prices in the industry of food. It is expected that greatly simplified the process of price adjustment, which will take into account market fluctuations, and this allows producers to react to changing market conditions. Besides market-based pricing will promote competition.

Ministry of economic development notes that despite state regulation of prices, starting in 2003, a socially important products become more expensive more than other types of products. The Agency therefore considers it appropriate to completely abandon the practice of state regulation.

to Regulate the price of certain types of products at the state level started after the introduction of the Government decree 25.12.96 "About establishment of powers of Executive bodies on regulation of prices and tariffs".