Starch consumption in Ukraine decreased to 8,000 tons

Published 2024년 9월 9일

Tridge summary

The article provides an insight into the history of Ukraine's starch industry, highlighting the challenges it faced due to the importation of products through 'gray' schemes in the 1990s. This situation, coupled with subsidies and tax evasion in Western Europe, resulted in a significant portion of Ukraine's domestic production being formed through import receipts. However, over time, the reliance on imported products has decreased, and the industry has seen positive changes, leading to the establishment of fair market rules and the revival of the starch industry. Modern production facilities have been established in Ukraine, indicating a positive trend for the industry.

Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

AgroPortal.ua was told by the acting Serhiy Lazar, director of Vymal PJSC. Since the 1990s, a lot of imported products entered Ukraine under "gray" schemes, and half of the domestic production volume was formed thanks to import receipts. "In Western Europe, the production of potato starch has always been subsidized, and there were three subsidies: a subsidy to a farmer who grows potatoes for processing into starch, a subsidy to an enterprise that processes it into starch, and also an export subsidy. The latter for some time was half the cost of the price. In addition, the products were smuggled into Ukraine without paying entry duty and VAT, so it was difficult for domestic starch to compete," Serhiy Lazar explained. He says that over time, the share of starch imported under "gray" schemes has significantly decreased. There have been ...

Source: AgroPortal.ua