Domestic potato processors proposed to the Ministry of Agriculture to raise import duties on potato flakes, which are used to make chips and mashed potatoes, from 5% to 32%. Kommersant writes about this, citing sources.
Russian producers asked to raise the import duty on potato flakes from 5% to 32%. This must be done due to the fact that it has become more difficult for domestic companies to sell their products. In addition, due to the strengthening of the ruble, foreign cereals fell in price, and domestic ones began to lose their competitiveness in the market, the sources of the publication noted.
They also added that cheap imports could threaten to shut down domestic businesses. In addition, the situation for local cereal producers has become much more complicated due to the rise in the price of potatoes. At the same time, market experts pointed out that the increase in duties can only provoke an increase in prices for potato flakes in Russia.
Market participants considered that instead of increasing duties, the regulator could lower VAT to 10%. Such a measure will help maintain demand for products.
At the end of July, McCain Foods Limited, the largest Canadian French fries manufacturer, sold its business in Russia to Vasily Starodubtsev, an entrepreneur from Tula. The plant for the production of frozen potato products will retain its profile, which was originally conceived.
