Information for fruit and vegetables business in CIS
Cancellation of additional import duties in Ukraine. How will it affect Ukrainian fruit and vegetable market?
The Verkhovna Rada of Ukraine has approved law No.3533 “on the measures promoting foreign economic activity" that cancels additional import duties from January 1, 2016. A total of 268 MPs voted for a relevant decision. However, according to Fruit-Inform, the leading Ukrainian fruit and vegetable market participants' opinion of the law is rather mixed.
The majority of Ukrainian importers of fruits and vegetables share the same opinion that it would be rather difficult to expect anything only on the base of passage of the law.
«It is too early to make any forecasts», says Mr. Maksim Kulik, Director at Garden Stuff. «Fruit and vegetable imports will most likely grow; however, a significant decrease in prices should not be expected. More than likely, the situation would affect Ukrainian growers' possibility to raise prices in the end of the season, as any increase in their prices would result in a rise in imports».
Mr. Fedor Rybalko, Founder of West Retail, shares the same opinion. According to him, cancellation of additional import duties will not be the only factor to affect the Ukrainian fruit and vegetable market in 2016.
«To make any conclusions and forecasts, the situation should be analyzed on a full-scale basis taking into account all novelties and laws coming into effect in the beginning of 2016», says Mr. Rybalko. «As a result, we face a variety of factors to affect the market development. We should also take into account a change of VAT for farmers, the beginning of the free trade agreement between Ukraine and the EU, the supply and demand balance in the market etc».
In addition, Mr. Fedor Rybalko is sure that the situation with the hryvnia exchange rates may also have an effect on the Ukrainian fruit and vegetable market developments.