Information for fruit and vegetables business in CIS
Customs' struggle against gray imports to have provoked record growth of prices for fruits in Ukraine
Ukrainian customs reviewed list prices for fruits. This indicator affects amount of taxes to be paid by importers during importation of their commodities to Ukraine. As delo.ua was informed by market participants, list prices fore some categories increased more than twicely.
So, in September, bananas were executed at $1,650 per ton, meanwhile in August, their list price was $600 per ton. Price cap for lemons increased 1.5-fold – from $900 to $1400 per ton. “We can't understand, what customs are guided with when fixing such prices. Besides this, duration of execution of commodities is also extended”, - Oksana Evenko, head of banana purchase and freight department of the company “Arkadiya”, notes.
Increase of list prices that affect amount of taxes to be paid by importers is already reflected at retail prices of fruits.
The largest growth of prices was recorded for lemons: wholesale prices for them are currently about UAH 24/kg (EUR 2.23/kg), retail prices – UAH 30/kg (EUR 2.79/kg) that is record-breaking rate in history. Even during the period of flu hysteria in autumn of the last year, when prices for onion and garlic were off-scale, maximum retail prices for citrus fruits were UAH 25/kg (EUR 2.32/kg). Within 2 weeks, bananas grew in price by one third – to UAH 21/kg (EUR 1.95/kg). Tangerines and oranges added 20% to their prices and are sold averagely at UAH 25/kg (EUR 2.32/kg).
“A cause of growth of prices is only one: extortions at customs”, - Andrey Yarmak, head of the project Fruit-Inform, explains. Moreover, market participants note that customs increased list prices practically every day. “Last week, prices stabilized, as indicative prices stopped to be increased. So, for example, if former list price for strawberries from Turkey was EUR 1.53/kg, and from Spain – EUR 2.00/kg, then current indicative price for strawberries from any country is EUR 2.00/kg.”, - Valentina Gilko, manager of purchase department of Metro Cash & Carry, explains.
Nonetheless, as experts note, prices keep on growing due to seasonality factor and traditional growth of citrus fruit consumption in autumn months. “In October, imports of lemons usually increases 2-3-fold”, - Andrey Yarmak states.
Customs assure that the Service operates within the confines of the law struggling against two main violations often carried out by importers: declaring of the wrong commodities to be really imported and understating of actual value.
Meanwhile, growth of prices logically led to decrease of fruit consumption in Ukraine. “According to the results of the year, if situation doesn't change, imported fruit consumption may fall by 20-25%”, - Andrey Yarmak says.