October 25 2002, 13:34 APK-Inform

Reduction of mandatory sugar price was a forced measure - Ukraine's Deputy Prime Minister

Commenting on the government's resolution about reduction of mandatory minimal selling price for white sugar to UAH2,050 ($379.6) per tonne from the former UAH2,370 ($438.8) since November 1 till December 31, Ukraine's Deputy Prime Minister Leonid Kozachenko said that the government had been forced to resort to such a measure because of the currently formed situation in sugar market and sugar plants.

The resolution was passed by the Cabinet of Ministers on October 23.

Now that the decision has been made, the plants will be able to get the funds they need so badly at the moment, having sold a part of their finished stocks, Kozachenko said. It will also enable them to settle the debts to beet suppliers, to power companies and pay wages to their employees. They could not do that before, as market price for sugar remained quite low and should they trade sugar at prices lower than the established minimal one, they were fined by government authorities.

Kozachenko believes after passing the resolution the prices in the market will drop by 5 to 10 percent, but after its expiry they will restore.