The FINANCIAL — Fat and oil enterprises are intending to cut down exports of sunflower oil to ensure additional supplies to the domestic market to stabilise the price situation, Stepan Kapshuk, the director-general of the field-specific association Ukroliaprom, has told Ukrainian News.
He notes, a corresponding memorandum between the biggest makers of sunflower oil and the Ministry of Agrarian Policy and Food Supplies was signed on February 3.
"The essence of the memorandum reduced to the following: from one side we are asking the Ministry of Agrarian Policy and Food Supplies not to introduce quotas and licensing of sunflower oil [exports], and we for expense of lowering exports will ensure additional supply to the internal market to reduce the price," Kapshuk said.
In his words, this memorandum was signed by each and every big fat and oil company that previous had worked only for export and not for the home market.
He remarks, at the moment there is no mechanism and rules of such re-focusing of portion of exports and, in his opinion, these will have been worked out by the end of this week (before February 14).
He nevertheless notes, preliminarily the company plans to reorient about 5% of exports a month onto the domestic consumers.
In general, Kapshuk recalls that Ukraine has surplus sunflower oil, because the internal market consumes between 20,000 and 25,000 tons of packaged sunflower oil a month, while its monthly production reached 300,000 tons.
As Ukrainian News earlier reported, the Antimonopoly Committee of Ukraine in January opened a monopoly abuse case against the Kyiv-based companies Suntrade and Kernel-Trade, and the Polohovskyi oil-extracting factory (Zaporizhia region) upon signs of monopoly abuse on the market of sunflower oil.
Suntrade and Kernel Trade in September 2010 pledged to the Antimonopoly Committee to retain the prices of sunflower oil at the stable level.
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