The SOVAT union of wholesalers and producers of alcohol and tobacco addressed Prime Minister Yulia Tymoshenko and President Viktor Yuschenko with the request that they prevent abolition or revision of the floor price of alcohol, SOVAT Director Volodymyr Demchak told a press conference.
"A letter was addressed to Tymoshenko and Yuschenko to describe our position and ask them not to revise the floor prices," he said.
Demchak also informed that a real threat of abolition or revision of the floor price emerged, noting that the proposal was initiated by some illegal producers at the level of Government and the Presidential Administration.
"The companies, which have always been shadow production leaders, are seeking abolition of the resolution (setting the floor prices) through the presidential administration and the government," he noted.
Demchak emphasized that a set floor price essentially reduces the share of unlawful producers in the market.
"We will try to secure that in a year the share of shadow market reduce from 20% to maximum 5%," he added.
In the opinion of alcohol industry representatives, a fixed floor price will help shift the consumption to legal sector.
As Ukrainian News reported, the Cabinet of Ministers set the level of minimal retail and wholesale prices of Ukraine-made alcohol starting on November 15.
Particularly, the floor wholesale and retail price for vodka was set at UAH 58.33 and UAH 70 per liter of 100-percent spirit, and for three-start cognac at UAH 104.17 and UAH 125 per liter of 100-percent spirit, respectively.
