BP adopted the law "About a recognition become invalid for some laws of Ukraine on state regulation of production and realization of sugar".

Parliament abolished the regulation of the sugar market

According to Biznestsentr, the adoption of bill No. 4532 in the second reading amendments voted by 263 deputies at the minimum required 226 votes.

The bill proposes to recognize as become invalid the law "About state regulation of production and realization of sugar", adopted in 1999.

As noted in the explanatory note to the document, the current law, among other things, provides for the regulation of the market by an annual quota of production and sales of made in Ukraine sugar.

However, as the authors of the bill, since the adoption of the law has been a significant decline in sugar production. In addition, at the request of the WTO, abolished the statutory export quotas for sugar. Also eliminated compulsory licensing of wholesale trade in sugar.

Thus, today confined to the production of sugar supplied to the domestic market.

See also: the Largest sugar producer in Ukraine has reduced sales by a third

"In addition to the risks of corruption relations in the process of distribution of quotas, quotas limiting the desire to increase the capacity of sugar beet cultivation and sugar production, but also eliminates market mechanisms," say the authors of the bill.

In addition, current law provides for the annual establishment by Cabinet of minimum prices for sugar beet supplied to sugar production for domestic consumption, and minimum sugar prices. This rule was to prevent a reduction in the price of these products to ensure break-even production.

However, as indicated in the explanatory Memorandum, during periods when the domestic sugar market is in surplus, from time to time market sugar prices fall below the statutory minimum price, which leads to a reduction of the movement of working capital in the industry.

Moreover, the predictive calculation of the relevant minimum prices for the next marketing year is almost a year before the launch of the sugar-making season.

"However, the current trends in the economic-financial situation on the domestic and international markets... to provide a real range in the level of minimum prices for sugar beet and sugar impossible," – noted in the explanatory note to the bill.

"Given the foregoing and in connection with changes that have occurred in the domestic and world market sugar, the need for administrative regulation, introduced by Law of Ukraine, have lost their relevance," say the authors of the bill.

Subscribe to Biznestsentr in Facebook, Twitter and Telegram

See comments →