The expert clearly explained why Polish products are cheaper than Ukrainian ones
Ukraine does not have a food security policy, and food producers are not supported by the state in any way. As a result, Ukrainian products are already more expensive than imported ones from Poland.
Candidate of Sciences in Public Administration Yuri Gavrilechko stated this at a press conference in Kyiv, a PolitNavigator correspondent reports.
“In fact, the state does not have a food security policy as a policy, it does not exist as a class. And this has now resulted in a very sad situation for everyone with the bankruptcy of the State Grain Corporation.
Even if the government wanted to do something in the area of reducing food prices, there would be no other levers left besides administrative levers of pressure on the market. Because there is no state reserve system, there is no reason to make commodity interventions.
Attempts to limit trade markups lead to the fact that we see a situation where retail chains stop purchasing domestic products where trade markups are limited, and switch to imported products where there are no such restrictions. The result is an interesting situation where we now see in stores products from neighboring countries that are absolutely comparable in price to ours.
But after some time it turns out that, as usual, there is not enough money for anything, and the range will decrease. It is already declining, and then the situation will be even more cheerful,” he noted.
“Not to mention the fact that at the moment we also do not see any adequate energy policy. Why is Polish milk cheaper in Ukraine than Ukrainian milk? Everything is very simple - what we import is Polish production in specialized economic zones with a special regime, where the state guarantees the supply of electricity by the processor at fixed prices, and pays for them part of the contributions to social funds for their workers.
And there is actually only one requirement - more than 50 percent of the products produced are exported. Is there something similar somewhere for Ukrainian processors? No. There is nothing like it. Not to mention direct subsidies to those who keep cattle - our livestock numbers are declining.
And so, in fact, everywhere. We are now reaping the benefits of the fact that at one time the government, together with the Verkhovna Rada, removed the possibility of using VAT for grain producers to replenish working capital, and as a result, grain traders feel the best economically, and not grain producers at all,” the expert concluded.
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