How product prices will be monitored in Ukraine

Author : Olexiy Doroshenko

Source : 112 Ukraine

The monitoring of prices for products, personal protective equipment, disinfectants and pharmaceuticals began to operate in Ukraine
23:00, 25 May 2020

112 Agency

The monitoring of prices for products, personal protective equipment, disinfectants and pharmaceuticals began to operate in Ukraine. Some say this will not be effective. These people are not related to trade, but the owners of grocery and pharmacy chains understand the matter.

Trade can raise prices without problems, but after notifying the State Consumer Service about it through the site. A significant increase in value, by 15% or more, must be warned in 30 days.

The state, in the form of the State Food Safety Service, will be able to collect information throughout the country and, most importantly, find out the reason for this growth by contacting the retailer - supplier - importer - manufacturer.

If the price increase is economically justified, for example, the world price of wheat has increased by 10%, then raising the cost of flour by 10–11% is economically justified. If there is a desire to make big profits, then the State Consumer Service transfers the research materials to the Antimonopoly Committee, which imposes a fine on the guilty party.

Since 2014, when the state liquidated several government agencies that dealt with consumers, the functions of contacting the Antimonopoly Committee in matters of increasing the cost of products were mainly performed by the Association of Networks Suppliers.

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But we were not able to provide a complete analysis in the country. The Antimonopoly Committee also did not have an appropriate number of qualified people who could do this in a short time. Now the State Consumer Service will do this, that is, collect information, process it and draw preliminary conclusions.

Of course, small shops will not de facto make the price increases. There are no state specialists to control them, but you and I have never had a situation in the country when prices rose primarily through shops.

This was mainly from the side of trade and pharmacy chains, which control a significant market share. And small business was drawn to the trends dictated by the "elder brothers."

Talking on markets. Since 2014, stores have lost popularity because they were no longer able to offer the best price. And the buyer went to the market. If, in the context of a change in price monitoring, it turns out that the markets are quickly raising the price, and goods at stores are by the old price, then the buyer will go to the store.

That is, a change in trends in the retail market is possible. And in order for changes to occur, it is necessary to finance a lot in changing the production technology or new equipment, if the old one is not able to provide such content. Thirdly, it is necessary to certify such products.

That is, it is a long process in which it is necessary to invest, and the government can amend the resolution and change the process.

Such price monitoring was introduced during the pandemic, but we clearly understand that the protective measures will be completely abolished in the country maybe in 2021. And by then it may become clear that the French monitoring model in Ukraine will take root, and this or the next government will leave it or even expand it.

And most importantly, everything is possible when there is a corresponding opportunity and political will. Therefore, the system begins to work today.

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