Perfection of the mechanism of agricultural produce pricing
2006
Petrunina, N.(The National Academy of Sciences of Belarus, Minsk (Belarus). Inst. of Economics)
During the period 2001-2004 despite of the growth of the growth of total production the main parameters of financial stability and solvency of Belarusian agricultural enterprises were below normative ones. It was caused by the increased disparity between the prices the prices for agricultural produce and material resources of industrial production used in agriculture. The main causes of unfavourable price ratios are price liberalization for material resources and services without coordination with possible dynamics of the prices for agricultural produce; large-scale monopolization among the processing, procuring and trade enterprises; drop of effective demand of consumers; negative influence of low prices for the imported products. The equation of price ratios can be reached in several directions, but the priority should be given to the economic methods of regulation such as guaranteed, target (equivalent, parity) and pledge prices, mechanism of commodity and purchase interventions.
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