Adds quote, details
KYIV, Dec 24 (Reuters) – Ukraine’s government will prepare measures to help domestic food producers, including bakers, cope with a rise in gas prices, Prime Minister Denys Shmygal said on Friday.
Following a record jump in gas prices across Europe, Ukraine’s prices have also risen, with flour millers reporting 10 gas price increases this year.
“On behalf of the president, the government is developing mechanisms to support Ukrainian bakers and also Ukrainian producers of staple food products,” Shmygal told a televised briefing.
He did not give detail, but said the government intended to limit the rise in prices for some types of bread.
The government has a list of basic foods considered especially important, including plain bread, cereals, vegetables and milk.
At the beginning of the year, the government limited the rise in gas prices for households by switching retail consumers to annual contracts with fixed prices until the end of April.
Earlier this week, sources told Reuters the government could restrict food wheat exports from the country later this season, as it seeks to tame inflation that is close to record levels.
The agriculture ministry and traders sign an export memorandum each season. It is currently set at 25.3 million tonnes without specifying the amount of feed or milling wheat shipments.
The government could update the memorandum and add a 4 million tonne milling wheat export limit for the rest of the season, the two sources said.
Ukrainian grain traders’ association UGA said this week Ukraine had enough wheat to ensure its domestic food needs and there was no need to limit exports.
(Reporting by Pavel Polityuk and Natalia Zinets; Editing by Jon Boyle and Barbara Lewis)
(([email protected]; +380 44 2449150; Reuters Messaging: [email protected]))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
www.nasdaq.com