The Cabinet of Ministers cancelled the state regulation of food prices.
The Cabinet of Ministers of Ukraine cancelled the state regulation of food prices, according to the resolution of the Cabinet of Ministers №394 dated 7 June 2017, New Time reports.
“The main purpose of these amendments is lowering administrative pressure on business, elimination of the state’s excessive interference with economic processes, development of competition and debureaucratization (deregulation) in pricing”, according to the explanation to the document.
This decision is expected to simplify the procedure of price adjustment depending on price fluctuations on the market, which will allow the producers to faster respond to market changes.
The resolution applies to the margin trade mark-ups to the producer’s wholesale price for flour, bread, macaroni, cereals, sugar, veal, pork and poultry, sausage, milk, cheese, sour cream, butter, oil, eggs not higher than 15%; to the margin levels of profitability and trade mark-ups for baby food; to the maximum amounts of payment for services, provided on retail facilities, on food and non-food products markets; to margin levels of prices; to the profitability rates (not exceeding 20%) for leasing retail facilities (areas), retail technological and/or refrigerating equipment in retail facilities, on the food and non-food products markets.
The resolution will come into force on July 1, 2017.
