Govt limits markup on Ukrainian-made pasta

On January 12, the Cabinet of Ministers of Ukraine added premium wheat flour and pasta (vermicelli) exclusively of domestic production to the list of foodstuffs with a maximum 10% retail margin, follows from the text of the resolution on the government website.

According to the resolution, the current list of products with a limited maximum margin includes rye-wheat bread, long loaf, buckwheat, granulated sugar, premium wheat flour, pasteurized milk with a fat content of 2.5% (in film), sunflower oil, chicken eggs C1, poultry (chicken carcass), butter with a fat content of 72.5% and pasta of domestic production (vermicelli from wheat flour of the highest grade).

Thus, the markup on wheat flour of the highest grade imported to Ukraine and pasta made from wheat flour of the highest grade is not subject to state regulation.

For foods from the approved list, the maximum retail margin is set at no more than 10% of the wholesale selling price, taking into account advertising, marketing, logistics services, preparation, processing, packaging and other services related to the sale to the end consumer.

According to the generalized statistics on the website of the State Customs Service, Ukraine in 2021 increased the export of pasta in U.S. dollars by a third compared to 2020 – from $54.2 million to $72.3 million, while their imports grew by 17.9% – from $50.0 million to $58.9 million. Accordingly, the positive balance of pasta trade for Ukraine amounted to $13.3 million last year (an increase of 3.2 times compared with 2020).

As reported, the Cabinet of Ministers, by Resolution No. 1432 dated December 30, 2021, included long loaf and sunflower oil in the list of foods, the rise in price of which shall be declared in advance by business entities selling them, and also forbade setting a markup on rye-wheat bread and loaf of more than 10%.

Also, the government, by resolution No. 1 dated January 12, expanded this list with nine types of foods.

Source: www.en.interfax.com.ua