September 16 2002, 16:42 Interfax-Ukraine

Ukraine to reduce duties on imports of hop - Agrarian Ministry

Ministry of Agrarian Policy is ready to initiate reduction of import duty for hop pellets to 25 percent from the current 50 percent of the customs value, the Minister Serhiy Ryzhouk has informed.

Such a proposal was submitted by Ukrainian brewers. The brewers have said the quality of Ukrainian hop does not meet necessary standards and they have to import it. The industry's demand in hop is 3,600 tonnes per year with 3.5 basis ?. According to MinAP, this year's hop crop in Ukraine has been 1,000 tonnes. Average price for hop in Ukraine currently is UAH18,000 (US$3,370) per tonne.

At the same time the Minister noted that hop accounted for a small share in the cost of bear - about 1 percent.

Domestic consumption of bear in Ukraine is estimated at some 150 million dekalitres per year.