Pridnestrovie's deflation caused by both seasonal and external factors

07/03/15 16:08

Pridnestrovie's deflation caused by both seasonal and external factors

This is what the head of Pridnestrovie' Price and Antimonopoly Committee, Vitaliy Ulitka, said in an interview with journalists

He recalled that such processes, as a rule, occur in Pridnestrovie each summer.

«This depends on seasonal factors, but this year external factors affect the process as well. Nearly 70% of Pridnestrovie's food production is imported, which influences the domestic market. The depreciation of national currencies in the neighbouring states has resulted in price fall. This has impacted on Pridnestrovie's manufacturers: they have turned non-competitive as compared to their Ukrainian and Moldovan counterparts," clarified Vitaliy Ulitka.

To settle this problem, Pridnestrovie's government has taken a number of steps. In particular, they have introduced special duties on milk production to provide a competitive business environment.

«As a result, the profits of the Tiraspol Milk Factory have increased by 20%. At the same time, we should not forget that support for local manufacturers and protection of consumers' interests must be balanced. It should not be forgotten either that we cannot regulate all prices for food products (sugar, salt, herring) as they are not produced in Pridnestrovie. However, local manufacturers can completely satisfy the need of flour and groats," said Vitaliy Ulitka.

According to him, it is important that the government should take measures to prevent deceptive trade practices.

«So, there must be a constant search for trade-off decisions," concluded Vitaliy Ulitka.


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