Vitaly Ulitka: price control necessary for transparent price policy

03/26/16 19:52

Vitaly Ulitka: price control necessary for transparent price policy

This is what the chairman of the Price and Antimonopoly Committee announced on the First Pridnestrovian TV channel
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Tiraspol, 26 March. /Novosti Pridnestrovya/. Prices and price policy, support for domestic manufacturers, customs duties and other issues were discussed live on the First Pridnestrovian TV channel. The chairman of the Price and Antimonopoly Committee became a guest of a new TV project.

«We are importing goods, while our exports are falling. We have a currency deficit, but we do nothing to support the domestic manufacturer anyway," noted Vitaly Ulitka.

He also stated that buying food products abroad today is cheaper than in Pridnestrovie. As a result, some sectors of the country's economy have only one manufacturer left. To overcome the existing situation. the government proposes to introduce price control over the most essential food products.

«It is necessary to understand real production price and the amount of the protective duty. Since 2013 we have been trying to persuade lawmakers into adopting a price control law. But we haven’t managed to win their support on this issue so far," emphasised Vitaly Ulitka.

«Price control measures do not apply to all food products. It is proposed to introduce the maximum permissible markup of 30% for imported goods only. People's deputies do not approve this draft law. They fear this measure may do harm to consumers by helping domestic manufacturers," added the chairman.

Vitaly Ulitka said that in 2015 protective duties were introduced for the Tiraspol Milk Factory. It was done to create competitive conditions in the dairy market.

«As a result, the manufacturer has dropped its prices. These measures have benefited the factory and helped continue production, otherwise the producer would have had to stop production," explained Vitaliy Ulitka.

According to him, the price control is necessary for the country's transparent price policy.

«We will control profitability and we'll see production net prices to fix customs duties so that these products are competitive and local manufacturers do not increase net prices," underscored Vitaly Ulitka.

Businessman Dmitry Kokhansky, however, believes that such measures will prevent the Pridnestrovian business from developing.

«You try to control, but at the same time you prevent local manufacturers from developing, which leads to price hikes. Although if he earns more, he will build more and will develop. This is a Soviet-style policy again. You should create conditions for local manufactures: we can produce both buckwheat and sugar," said the founder of TA Tsyta, Dmitry Kokhansky.

In response to that Vitaly Ulitka said that prices are better formed in a competitive environment, specifying that there is no competitive environment in our country's retail sales of product goods because there is a dominant player in the market.

«That is why, when there is no competition, there is a special need for governmental price control to balance the manufacturer, consumer and importer," said Vitaly Ulitka.

In the conclusion he noted that the introduction of this measure is especially relevant in connection with last year's devaluation of currencies in neighbouring countries.

«We were insisting on the price control measures as prices for imported goods did not go down, which have resulted in the development of the so-called product tourism," concluded Vitaly Ulitka.

 

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