Proportion of domestic food products doesn't exceed 30% in the Pridnestrvoie's market

04/28/15 13:29

Proportion of domestic food products doesn't exceed 30% in the Pridnestrvoie's market

Pridnestrvoie's Deputy Minister of Economic Development Dmitry Boltrushko told it at the TV program "Vovremya. Itogi"

Import food products occupy 70% of the market, whereas the proportion of domestic goods is 30%, Pridnestrvoie's Deputy Minister of Economic Development Dmitry Boltrushko told at the TV program «Vovremya. Itogi».

«Dependence on the foreign products is enormous. As for the nonfoods, the situation is even worse: proportion of import goods reaches 100% in some classes of goods», Dmitry Boltrushko told.

The Deputy Minister noted that such situation was caused by the devaluation of national currencies in the neighboring states. For businessmen, it is cheaper to import goods from Ukraine and Moldova, than to produce them in Pridnestrovie. From the business perspective, it is justified, because it makes profit. However, as Dmitry Boltrushko emphasizes, such trade benefit is short-term. Production process and feedstocks aren't developed in the republic. It makes a chain reaction in return: decrease in outputs — reduction of tax revenues in the budget — reduction of payments for the budgetary obligations. As a result, decrease in domestic demand will cause further reduction in profits of those businessmen who benefit from selling the import production today.

According to the Deputy Minister, in this context, the aim of the state is to slow down excessive import and to motivate domestic producers. The government already takes measures to restrict imports of certain product types. Besides, an executive order obliging the distribution networks to sell the certain amount of the certain domestic production was developed.

«We tried to navigate this legislative initiative through the Supreme Council, however we were not understood by the deputies," Dmitry Boltrushko summarized.

Nevertheless, the government will focus on the food security closely. It is planned to impose customs duties on some types of goods. According to the Deputy Minister, this measure will become a signal for potential investors, because it means that the state is ready to expand opportunities for the Pridnestrovie's producers.

 

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