OREANDA-NEWS. January 27, 2009. Prime Minister of Ukraine Yulia Tymoshenko has instructed the Ministry of Economics and State Inspection on Price Control to analyze the cost price of chemical fertilizers to prevent their rise in price during the spring-field period. Yulia Tymoshenko stated at a meeting with heads of regional state administrations and their deputies on issues of supporting the agro-industrial complex.

“I ask you to define a clear action algorithm, how to retain the cost of fertilizers at the level ensuring the minimum profitability of plants but not giving excess profit,” Yulia Tymoshenko stated, addressing representatives of the Ministry of Economics and State Inspection on Price Control.

According to the Head of Government, inessential rise in chemical fertilizer prices is fixed today which can be connected with the situation in gas market. At the same time, Yulia Tymoshenko believes that rise in fertilizer prices can have other reasons, so it is necessary to analyze the cost price of their production, “Now, we have to analyze the cost price of fertilizers. That couldn't be, that gas price for industry is by 74 percent lower against Poland and on average by 50-60 percent lower against the other countries, and in Ukraine the plants are behaving in such a way that we consume production at world prices”. 

The Head of Government stressed, the state, giving preferences to a producer in this sector, can lay down certain conditions and analyze the cost price of production. “I am confident, there are reserves and resources and, additionally, the state has instruments of authority, even such as VAT return,” Yulia Tymoshenko said.