Opinion: The creation of wholesale markets for agricultural products could exacerbate corruption

Written by admin on July 10th, 2009

Verkhovna Rada adopted the Law on the wholesale markets for agricultural products (ORSP), which, in the opinion of parliamentarians, will help reduce the gray market trade in agricultural products by 20-30%.

The law states that the status of the wholesale market of agricultural trade (ORSP) can get on a competitive basis, any legal entity. To do this you need to apply to local government Minagropolitiki the relevant application and business plan. If the entity will become the official wholesale market, for the period of its formation (up to seven years) the budget will allocate funds for the establishment of its infrastructure. In addition, it can rely on tax breaks or special tax treatment, which will provide the Cabinet or local authorities.

Act also provides that the creation of such markets will be allocated plots of land, which will be removed from private property as public need.

document also includes incentives for farmers if they use the services of the wholesale markets. The cost of storage and warehousing of products in the market will be reimbursed to them from the state budget over the seven years since its opening. Thus farmers will be more profitable to sell products on the market, and wholesalers to purchase products in these markets, as well as the law provides for quality control of products sold.

Experts do not deny that the adoption of this law will increase competition and thus help to equalize the prices of products in different regions of the country. However, it opens up many new opportunities for corruption. Thus, the probability is high that the tax relief companies will receive close to local officials.

In addition, the wholesale market can be obtained the desired plot, agreed with local authorities, ostensibly for public needs. In doing so, he may be in private ownership.

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