The Ukrainian government has raised the floor prices of vodka in Ukrainian retail outlets by almost 7.3%, to Hr 28 per a 0.5-liter bottle.
“Our proposal was supported, and they decided on [the floor prices of vodka] at Hr 28 [for a 0.5-liter bottle]. We’re not raising prices of either wine or brandy,” Ukrainian Agrarian Policy and Food Minister Mykola Prysiazhniuk said at a briefing after a government meeting on Wednesday.
The minister suggested that an increase in the floor prices might be conducive to a certain decline in vodka consumption in the country. At the same time, the minister said that “the vodka industry will be able to get adjusted.”
Prysiazhniuk said that while passing the decision, the government took the ministry’s proposals into consideration.
As was reported, Ukraine’s Finance Ministry in September 2012 posted on its Web site a draft cabinet resolution on amendments to the annex to cabinet resolution No. 957 of October 30, 2008 which proposed a gradual increase in the minimum wholesale and retail prices of alcohol.
The Agrarian Policy and Food Ministry did not support that initiative at that time.
The floor prices of alcohol were reintroduced late in October 2008 at the request of alcohol producers. The last time when the prices were revised by the government was in August 2011.
The minimum retail price of a 0.5-liter bottle of vodka was increased by 45.3%, to Hr 26.1, that of brandy (three stars) rose by 26.7%, to Hr 33.08 per bottle, and the minimum retail price of a 0.7-liter bottle of wine grew by 50%, to Hr 18.
