Information for fruit and vegetables business in CIS
Minimum prices for sugar beets grown at small private plots
Interfax Ukraina announced that projected price for sugar beets purchased by sugar mills from small private plots owners is $26.12/MT.
Today this price is $31/MT irrespective of the producer.
Experts from the National Association UkrTsukor are planning to submit corresponding amendments to the Cabinet's decree on sugar market regulations in 2002/03 marketing year.
The reason why small private farmers should get less is the fact that they do not pay VAT whereas sugar mills have to pay this tax twice in such a case. Statistics says that 24% of sugar beets processed through sugar mills are purchased from small private farmers.
"There are mills that bought 60-70% of raw materials from small private farmers", - said representative from the said association.