The rising cost of imported raw materials due to the devaluation of the ruble, the threat of unstable demand and difficulties with the supply on the background of the pandemic COVID-19 forced the producers of soft drinks to appeal to the government for additional support. Market participants have asked Prime Minister Mikhail mishustina to zero duty on 145 types of raw materials and equipment. Otherwise, they threaten to increase the price of drinks by 10-12%.The Union of producers of soft drinks (WIS; unites producers of 70% of soft drinks in the country) appealed to Prime Minister Mikhail Mishustin with the request to zero import duties on raw materials and ingredients, and equipment for production. A copy of the letter is “b”. To nullify the proposed duties on 145 items, including frozen fruits and berries extracts, mixtures of vegetable fats, milk formulas, raw materials for the production of dairy products, purees, fruit juices, dyes, etc such goods subject to duty from 3% to 15%. It is planned to reset rates only for goods which are not produced in Russia or are unparalleled.According to the President WIS Maxim Novikov, the pandemic COVID-19 and the devaluation of the ruble manufacturers and importers may face an unstable demand, downturn in investments, as well as difficulties with the supply of imported components and materials. Zero duty is necessary because of currency fluctuations increased the cost of raw materials for juice products and soft drinks, as well as the price of the equipment. While manufacturers keep selling price at the expense of existing stocks of raw materials, however, without additional measures of state support in this situation do not warn WIS. The Union proposes to include in the plan of the government for recovery of employment, incomes and economic growth. In the office of the Prime Minister did not respond to a request “b”.Vice President, corporate relations PepsiCo (produces juices under the brands J7 and “I”) Sergey Glushkov noted that the proposal WIS will help to restrain the growth of prices for certain range of juice products and fruit lures, which is especially important given the fall of the ruble. In “Ochakovo” they say that use imported raw materials and in the production of kvass. According to the source “Kommersant” in the market, without zero tariffs beverage prices could rise on average by 10-12% for a year and a half.Director General of the National Union of milk producers (“Soyuzmoloko”) Artem Belov says that the imported components in the cost of production of dairy products accounts for 15-30%. So the change in the cost due to the weakening of the ruble to the manufacturers significantly, he points out. But “Soyuzmoloko” stands for a temporary abolition of duties only on those items whose production in the Ro��these is missing or insufficient, for example, bases for breast milk substitutes. In April, the Eurasian economic Commission (EEC) has already canceled before the end of June toll, which previously stood at 11%.CEO Berry Union Irina Koziy confirms that Russian producers now do not provide all the needs of the processing industry frozen berries, most of which are available in retail fresh. But, she points out, market participants began to invest in deep processing of berries. And if to zero the duties on products, while maintaining the rate of import of equipment and goods necessary for the cultivation of fruit (seedlings, fertilizers, etc.), it is not necessary to wait for the development of domestic production, warns Ms. Goat.Partner “Rustam Kurmaev and partners” Dmitry Gorbunov said that the WIS initiative can be implemented through the government decree on that count, the authors, addressing a letter to Mikhail Mishustin. But the obstacle may be the position of the government that when making decisions, takes into account the interests of all market participants, he adds. In addition to cancellation fees should the decision of the Board or of the Council of the EEC, said the representative of the Commission.Alexei Polukhin
