Government supported an initiative of the Ministry of Agrarian Policy and Food on deregulation of the sugar industry

Upon the initiative of the Ministry of Agrarian Policy and Food the Cabinet of Ministers of Ukraine has adopted a draft law on deregulation of the sugar industry on 24 February 2016.

Tools that regulate the sugar industry, which were provided by the Law "On state regulation of production and realization of sugar", are inefficient in use and no longer as relevant. This was demonstrated by significant annual fluctuations in prices and by the deficit or surplus of sugar in the domestic market. The Ministry of Agrarian Policy and Food has initiated their abolition.

"We are deregulating the agricultural sector, in particular the sugar beet industry. Proposed by the Ministry of Agrarian Policy and Food and supported by the Government the new bill provides further development of the sugar beet industry based on market principles and free competition. Meanwhile the domestic market and a Ukrainian manufacturer remain protected by 50% import duty. This is another step towards deregulation", the Minister of Agrarian Policy and Food Oleksiy Pavlenko said.

It should be noted that the purpose of the draft law is not only deregulation of the sugar beet industry, but also the abolition of the Law of Ukraine "On amending article 5 of the Law of Ukraine "On the state regulation of import of agricultural products", in which states that there must be mandated minimum price for the sale (purchase) of sugar beet for sugar production of quotas "A" and mandated minimum price for the sale (purchase) of sugar quota "A".