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Food becoming more expensive in Ukraine, government does nothing to stop it

Author : Oleksiy Kushch

Source : 112 Ukraine

You can’t do nothing to protect your market during a crisis, especially for social groups of goods
23:14, 29 March 2021

112 Agency

You can’t do nothing to protect your market during a crisis, especially for social groups of goods.

There is such a thing as Giffen goods. This is when purchases grow in proportion to the increase in price. Our Giffen's products include bread, cereals, sugar, potatoes and sunflower oil.

In China, this is rice and pasta, which is why the price of these products in the Celestial Empire will always be below export parity (the authorities are not trying to avoid the problem there, leaving it at the mercy of the "market hand").

And it is not necessary to use administrative methods in the form of price caps or the sale of goods in "social stores".

The Russian Federation has introduced a 50% export duty on sunflower seeds to protect domestic processing and domestic market. By the way, in Russia there is also a duty on the export of rapeseed in the amount of 30%.

This news is about the same thing that I have been writing about all recent years in terms of export duties on the export of agricultural raw materials. In fact, all this only confirms the theory of the presence of a single field of correct decisions, which experts in different countries come to independently of each other.

And what about Ukraine?

And we are in the "trend" of a decrease in export, for example, of sunflower seeds: in 2020 - 5.5%, in 2021 - 4.5, in 2022 - 3.6, in 2023 - 2.7%, in 2024 - 1.8% and in 2025 - 0.9%.

As it was promised to foreign partners. But nobody promised anything to domestic consumers. Except for "export parity" ...

Related: Ukraine puts Privatbank's ex-chair of board of directors on wanted list

Related: On March 30, 1 USD to cost 27.96 UAH, - National Bank of Ukraine

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