The Government of Ukraine is considering revising the minimum retail prices (MRPs) for alcoholic beverages, as the current tariffs set in 2018-2021 no longer reflect real production costs. In particular, it is planned to increase prices for wine products (except sparkling and carbonated wine beverages) by 40-85%, and for sparkling and carbonated wine beverages 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 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 UAH 4.32 per kWh.
Increasing the MRC is important to maintain the stability of Ukraine's wine industry, which faces numerous challenges. Over the past 30 years, the area of vineyards in the country has decreased from 175.5 thousand hectares to 40 thousand hectares. In 2023, in the Odessa region alone, 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 association “UKRSADVINPROM”, which unites 85% of the wine industry, regularly addresses the Ministry of Economy with proposals to revise the minimum prices for alcoholic beverages, justifying the need for this step by inflationary pressure and rising production costs.
Volodymyr Pechko, head of Ukrsadvinprom, stressed that the revision of the minimum price will help support winegrowers by 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 may amount to about one and a half billion hryvnias.
