The Government of Ukraine is considering revising the minimum retail prices (MRP) for alcoholic beverages, as the current tariffs established in 2018-2021 no longer correspond to real production costs. In particular, it is planned to increase prices for wine products (except sparkling and carbonated wine drinks) by 40-85%, and for sparkling and carbonated wine drinks - by 12%.
The main reason for the revision of the MRC is the significant increase in the cost of the main components of production, such as gas, diesel fuel and electricity. In recent years, the prices of these resources have increased significantly: gas has risen in price from UAH 1.3 per cubic meter to UAH 7.96, diesel fuel - from UAH 28 to UAH 53 per liter, and electricity for the population has increased from UAH 1.68 to 4. UAH 32 per kWh.
Increasing the MRC is important for maintaining the stability of the Ukrainian wine industry, which is facing numerous challenges. Over the past 30 years, the area of vineyards in the country has decreased from 175,500 hectares to 40,000 hectares. In 2023, only in the Odesa region, the area of vineyards decreased by 2,800 hectares compared to the previous year.
The initiative is supported by the agrarian and tax committees of the Verkhovna Rada, as well as industry experts. The public union "UKRSADVYNPROM", which unites 85% of the wine industry, regularly addresses the Ministry of Economy with proposals for revising the minimum prices for alcoholic beverages, justifying the need for this step by inflationary pressure and rising production costs.
Volodymyr Pechko, the head of "Ukrsadvinprom", emphasized that the revision of the minimum price will help support grape growers, allowing them to sell grapes at more favorable prices. This, in turn, will stop the mass uprooting of vineyards. Additional revenues to the state budget from this step can amount to about one and a half billion hryvnias.
