Ukrainian Holiday Food Basket May Become More Expensive: What's the Reason
Date: 2023-12-06 Author: Dima Zakharov Categories: ECONOMY
Ukraine faces a possible increase in the cost of its holiday food basket for 2023 if Polish carriers don't cease their blockade of border crossings by December 10. The warning came from the first deputy minister of agrarian policy and food.
Speaking during a televised marathon, Taras Vysotskyi, the first deputy minister, highlighted the risk of the holiday basket becoming more expensive. He emphasized that if Ukraine's partners, particularly Poland, fulfill their promises by the deadline, the situation could stabilize. However, failure to resolve the border issues by December might lead to an unfortunate increase in the cost of the consumer basket.
Vysotskyi separated the festive food set into two parts, focusing on essential social products. He assured that Ukraine has ample domestic production to cover staples like grains and vegetables, foreseeing no price fluctuations in these categories.
He noted the significant drop in prices for certain products compared to a year ago, citing buckwheat being 60% cheaper, onions and carrots down by 60%, eggs by 16%, and oil by 18%. These reductions are mainly due to domestic production, resulting in no inflation within these basic product categories.
However, Vysotskyi expressed concerns about imported goods like bananas, citrus fruits, seafood, and fish. He highlighted the potential for price increases in these categories due to disruptions caused by the ongoing border blockade. If the situation persists, the increased logistics costs might inevitably translate into higher prices for consumers.
Effects of Border Blockades
Denys Marchuk, deputy head of the All-Ukrainian Agrarian Council, reassured that the blockade wouldn't lead to widespread shortages of essential food items as most are domestically produced. However, he cautioned about potential disruptions in the supply of traditionally imported goods, particularly seafood products and salt.
Meanwhile, ATB, a major retailer, reported having various Polish dairy products, frozen vegetables and fruits, pasta, beverages, alcohol, cleaning, and cosmetic products in their stores. The blockade has also affected the delivery of goods from Baltic countries, Germany, the Netherlands, and Belgium, contributing significantly to the company's inventory.
