regulates the price state outside of the organized market?

In this article the explanation about restriction of established state minimum and ceiling purchase prices on separate types of grain crops is given.

Reorganization 2002

Minagropolitika’s order from 27.02.08 (in order edition from 08.10.08 of No. 644) established the minimum and ceiling prices of separate types of grain crops. Whether carries out the state price regulation outside of the organized agrarian market, that is at production sale between physical and legal entities not at the agrarian exchanges?

In a national economy free prices and tariffs, the state fixed and regulated prices and tariffs are applied. Free prices and tariffs are established on all types of production, the goods and services, except for on what state regulation (by Art. 6, 7 Laws from 03.12.90 of No. 507-HI About the prices and pricing is carried out).

State intervention in process of a tsenoobrazoyovaniye is limited to establishment of the minimum and ceiling purchase prices of objects of the gosuyodarstvenny price regulation which list is defined by the Law from 24.06.04 of No. 1877-IV About the state support of agricultural industry of Ukraine (further – the Law No. 1877). The essence of gosuyodarstvenny price regulation consists in implementation by Agrarian fund of financial and/or commodity interventions in volumes, pozvoyolyayushchy to establish the balance price (fixing) at level not below the minimum purchase price and not above the ceiling purchase price (the paragraph the first item 3.2 of the Law No. 1877).

The minimum purchase price metric ediniyoets of separate object of the state price regulation – is the price indicator which is the basis for making decision on implementation of financial intervention and ispol­zuetsya for planning of the income of sellers of such object in Ukraine and in other purposes defined by the Law No. 1877 (Law No. 1877 item 4.1).

The minimum purchase price of separate object of the state price regulation ustanav­livaetsya at level which does impossible average unprofitability of production in Ukraine such metric unit.

The ceiling purchase price metric ediniyoets of separate object of the state price regulation – is the price indicator which is the basis for making decision on an osuyoshchestvleniye of commodity intervention and is used for planning of expenses of consumers of such object in Ukraine and in other purposes defined by the Law No. 1877 (Law No. 1877 item 5.1).

The ceiling and minimum purchase price of separate object of the state price regulation are established for a certain period by the central executive authority concerning formation and ensuring realization of the state agrarian policy.

In response to Law No. 1877 requirements Minagropolitika’s order from 08.10.08 of No. 644 established the minimum and ceiling purchase prices of objects state price a regulirovayoniya in 2008/2009 marketing year, in particular on wheat and barley of all classes, corn of all groups.

I focus attention that the minimum and ceiling prices of objects of the state price regulation, including of grain, are used only at decision-making otyonositelno carrying out financial or tovaryony interventions by Agrarian fund. The state doesn’t carry out price regulation for prede­lami the organized agrarian market of Ukraine (the paragraph the second item 3.2 of the Law No. 1877). That is goyosudarstvenny price control not raspro­stranyaetsya on operation on production sale between the physical and legal entities, carried out not at the agrarian exchanges.

Support of the prices for grain outside of the organiyozovanny market is carried out by exclusively indirect methods directed on a foryomirovaniye of the favorable competitive environment and support of the income of agricultural tovayoroproizvoditel.

On Balans-Agro newspaper materials.