KYIV. Aug 5 (Interfax-Ukraine) – A pilot project to annul government regulation of food prices and services in retail outlets could be launched from August 15 for three or four months.
According to draft resolution posted on the website of the Economic Development and Trade Ministry it is proposed to temporarily suspend resolution No. 1548 dated December 25, 1996 and resolution No. 1222 dated October 17, 2007 in part government regulation of baby food, bread, flour, sugar, cereals, meat and dairy products, eggs, sunflower oil and other food prices.
The revoking of government regulation of the fee for services provided in retail outlets, food and nonfood markets, the level of prices and effectiveness of rent rates on retail space.
The State Statistics Service is obliged to monitor the prices of the above-listed goods and services until November 15, 2016 and submit information on the results to the ministry.
According to an explanatory note, rent rates effectiveness limit set at 2-15% (depending on the region and type of products) the real effectiveness of food production was minus 13.1%, according to statistics.
According to the ministry, loss-making and extra administrative price regulation hinder investment into modernization of Ukrainian food production and building new production lines. Government regulation of prices makes companies to reduce salaries and workforce.
The draft resolution aims at facilitating the procedure for price changes depending on the situation on the market. This would help producers to more quickly react to the changes.
