Inna Linnik: protecting duties contribute to development of domestic enterprises

06/21/16 17:37

Inna Linnik: protecting duties contribute to development of domestic enterprises

Tiraspol, 21 June. /Novosti Pridnestrovya/. The effect of applying special customs duties was discussed on the First Pridnestrovian TV channel. As the first deputy minister of economic development, Inna Linnik, underscored, when introducing them in 2014−2016, the government aimed, first of all, to support domestic manufacturers who had been affected by the depreciation of Ukrainian and Moldovan products.

«The changes of customs duties we made have really led to an increase in output and sales at the enterprises to which we granted assistance. This includes both fish and milk and flour products. The production of meat products has tripled," she said.

«The protective duties seriously helped at the first stage. We had lost some 40% of market (before the duty was introduced, ed.), last year and in the first quarter of this year we ended up with a zero balance, but we ended April with profits," said the director of the Tiraspol Milk Factory, Stanoslav Tarasyuk.

As the Ministry of Economic Development noted, when a protective duty was imposed on this or that product, retailers began to sign contracts with local manufacturers.

«We say we prepare duties if you agree to increase up production by a certain percentage, keep the jobs and use the profit to modernise the production. The agreement also stipulates that prices cannot be raised by over 5%," noted Inna Linnik.

The manufacturers said they are ready to sell products in the home market and even increase up production but on condition of expanding market outlets.

«We are not allowed to retail chains, especially by the Sheriff company, I can say it directly. We repeatedly addressed to them, proposing our products. We haven't received any answer from them so far. We have begun to install new refrigerating chambers, a new poultry processing line. We have capacities, we can open new poultry breeding shops, we have not done it up to now because the market was closed for us," said the director of the Grigoriopol Poultry Factory, Vasily Bankov.

The manufacturers noted, at the same time, that they plan to maintain prices at the present level.

«We don't consider increasing prices at all," said the director of Bendery's bread and baking factory, Lyudmila Chaykovskaya.

«I think prices will not go up significantly because it is understood that our competitors are Moldova and Ukraine, and if we start raising prices, we will lose our consumers. I think no one is interested in that," added the head of the Rilla company, Faina Sporish.


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