You're reading: Ukrkhlibprom initiating weakening of administrative regulation of bread prices

The Ukrkhlibprom association, jointly with the Ministry of Agricultural Policy and Food of Ukraine, has drafted a government decree aimed at weakening the regulations on profitability in the baking industry.

"The local authorities will get the right to restrict it [profitability] to the level of at least 10% but no higher than 15%," Ukrkhlibprom Board Chairman Oleksandr Vasylchenko said in an interview with the Vlast Deneg edition.

According to him, at present "there is no need for administrative regulation of bread prices."

"The government has been regulating bread prices for all the years of independence, they are constantly regulated through administrative measures. And this affects the baking industry," he said.

He also noted that Ukrkhlibprom and the ministry have prepared another draft cabinet decree, which foresees amendments to the list of energy saving materials, equipment and components that are exempted from import duty and VAT. In particular, this concerns imported equipment for bakery production, bakery ovens, boilers and gas burners.

According to Vasylchenko, the adoption of this resolution will facilitate the technological renovation of the baking industry.