State regulation of the grain market in Ukraine
Theoretical foundations and methodical approaches to the study of state regulation of the grain market in Ukraine and the main directions of its future development. Problems related to the formation of directions for state regulation of the grain market.
| Рубрика | Экономика и экономическая теория |
| Вид | статья |
| Язык | английский |
| Дата добавления | 19.03.2024 |
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Lviv National Environmental University
STATE REGULATION OF THE GRAIN MARKET IN UKRAINE
Berezivskyy Zinoviy Petrovich Ph D, Associate Professor,
Associate Professor of Department of Economics
Berezivska Oksana Yosipivna Ph D, Associate Professor,
Associate Professor of Department of Tourism
Summary
grain market state regulation
The theoretical foundations and methodical approaches to the study of state regulation of the grain market in Ukraine are substantiated, and the main directions of its future development are established. A significant part of the problems related to the formation of directions for state regulation of the grain market remains understudied and requires further elaboration. This confirms the relevance, novelty and expediency of carrying out a scientific study of this problem. The research methodology of the state regulation of the grain market is described, which is based on the use of methods necessary to determine the relationship between factors and results.
Key words: state regulation, grain market, agricultural enterprises, economic efficiency, agricultural production, market conditions.
Introduction
The relevance of the problem of the efficiency of growing grain crops in modern conditions comes first among other important problems. Solving and implementing this problem is the basis for the formation of the real well-being of the population of Ukraine and the improvement of its food security.
The effectiveness of the grain market depends on the level of ensuring the balance of the interests of the state and commodity producers. The experience of grain market development in different countries and forms, as well as at different stages of human development, shows that the model of free market exchange cannot be applied to the grain market in its entirety.Jn the process of functioning of a free competitive market, short-term disparities are allowed, which are associated with significant price fluctuations caused by frequent fluctuations in demand and fluctuations in the world market. An additional factor influencing the state regulation of the grain market is the low level of demand elasticity for grain products. With this in mind, a grain market has now been formed in Ukraine, based on state regulation of the main aspects of its activity [1].
Materials and methods
The problem of state regulation of the grain market is constantly in the field of view of scientists, in particular, Bakum M. M. [2],, Berezivskyy Z. P. and. Berezivska O. Y. [3], Borodina O. M. [4], Demyanenko M. Ya., Sabluk P. T., Kozlovskyi S.V., Kireeva E.A. and Zhurakivskyi E.S. [6], Mazur G.F. [7], Pleskach V. L and Kulyk A. V. [8], and others.
Given the place and role of the grain industry in the system of agricultural production, the feasibility of creating an economic mechanism for state regulation of the industry, which will cover the entire range of measures of influence on economic relations, follows. The grain market of Ukraine needs fundamentally new approaches to innovative development that would take into account market conditions and national interests. Based on this, an economic mechanism based on the combination of both state regulation and market self-regulation, the balance of financial and credit and price policies is being formed to ensure the continuous development of the industry.
The purpose of this research is to analyze the state of state regulation of the grain market in Ukraine. The main task was the substantiation of theoretical and methodical approaches to determining directions of state regulation of the grain market.
The economic stability of the country under the conditions of market transformations is determined by the competitiveness of business entities in the field of grain production. Their condition depends on the realization of the potential of the organizational and economic mechanism of increasing the competitiveness of the industry as a set of methods and levers for managing production efficiency, taking into account state support.
The set of scientific research methods allows you to substantiate the issue of obtaining the maximum effect from the implemented measures of state regulation of the grain market in Ukraine.
Results of research
The grain market of Ukraine, having passed a long time of formation, can evaluate the trends of formation from the point of view of consistency, rationality and logic. The main thing in these processes was the state administration. Therefore, a chosen model of behavior was imposed on economic entities. In this case, the state is entrusted with the role of the main regulator of price, as well as structural proportions in order to avoid sudden changes in the situation or to eliminate emerging violations in the market.
In the table 1 analyzed the production of grain crops by region of Ukraine. The indicators in the table indicate that certain changes have taken place in the regional structure of grain production in Ukraine in recent years. Vinnitsa, Poltava, Chernihiv, Cherkasy, and Odesa regions take the leading positions in terms of the level of production of grain crops.
Unfortunately, the current realities related to the consequences of the fullscale war of the russian federation with Ukraine indicate significant changes taking place in grain production according to regional principles. It is predicted that in the future, the most intensive cultivation of grain crops will be carried out by agricultural enterprises located outside the borders of military operations, especially in the western regions of Ukraine.
The functioning of the grain market is regulated by the Law of Ukraine "On Grain and the Grain Market in Ukraine", adopted on July 4, 2002 [9]. This law defines the main economic, administrative, legal, and other principles of the development of the grain market to ensure a high level of competitiveness and income of agricultural producers, and to cover economic needs in raw materials.
Table 1
Production of grain crops by regions of Ukraine, thousand tons
|
Region |
2020 |
2021 |
Position of the region (2021) |
|
|
Cherkasy region |
2692,3 |
5150,3 |
4 |
|
|
Chernihiv region |
5389,3 |
5977,1 |
3 |
|
|
Chernivtsi region |
578,2 |
728,9 |
23 |
|
|
Dnipropetrovsk region |
3539,5 |
4948,8 |
7 |
|
|
Donetsk region |
1988,0 |
2227,6 |
17 |
|
|
Ivano-Frankivsk region |
826,5 |
1009,5 |
22 |
|
|
Kharkiv region |
4852,6 |
4936,9 |
8 |
|
|
Kherson region |
2719,9 |
3528,8 |
14 |
|
|
Khmelnytskyi region |
3985,3 |
4830,8 |
9 |
|
|
Kirovohrad region |
2689,1 |
4981,1 |
6 |
|
|
Kyiv region |
2987,2 |
4567,4 |
10 |
|
|
Luhansk region |
1375,9 |
1391,1 |
21 |
|
|
Lviv region |
1607,4 |
1827,9 |
18 |
|
|
Mykolaiv region |
2362,1 |
3925,5 |
12 |
|
|
Odesa region |
1955,0 |
5105,4 |
5 |
|
|
Poltava region |
5050,3 |
5979,6 |
2 |
|
|
Rivne region |
1443,7 |
1727,0 |
19 |
|
|
Sumy region |
4819,7 |
4260,7 |
11 |
|
|
Ternopil region |
2837,4 |
3303,7 |
16 |
|
|
Vinnitsa region |
4015,3 |
6535,5 |
1 |
|
|
Volyn region |
1401,2 |
1509,3 |
20 |
|
|
Zakarpattia region |
327,0 |
362,8 |
24 |
|
|
Zaporizhzhia region |
2964,4 |
3838,0 |
13 |
|
|
Zhytomyr region |
2526,1 |
3356,7 |
15 |
|
|
Autonomous Republic of Crimea * |
||||
|
Ukraine |
64933,4 |
86010,4 |
Х |
* due to the state of war, there are no data on the temporarily occupied Autonomous Republic of Crimea
The main provisions of this law are formed into a set of principles of state regulation of the grain market (Fig. 1) [1, 11]. From this model, we can see that the main directions of state regulation of the grain market are the following measures:
S implementation of actions aimed at creating favorable conditions for the functioning of the grain market and its subjects;
S ensuring the regulation of actions aimed at adjusting the market situation;
S implementation of supporting actions to increase the volume of production and export;
S control actions aimed at compliance with product quality.
The implementation of the agrarian policy of the grain market includes the use of a set of measures aimed at various spheres of activity of its subjects. Under such conditions, it is important to choose the optimal method of implementation of state policy regulation, which, based on a skillful combination of its tools, would provide a motivational component through the determination of strategic priorities and the formation of a set of goals. This will make it possible to project the state of the grain market not on the basis of its current parameters, but on the basis of the desired state.
Fig. 1 The main directions of state regulation of the grain market
In order to ensure comprehensive support for agriculture, on June 26, 2004, the Law of Ukraine "On State Support of Agriculture of Ukraine" [10] was adopted, which forms the basis of state policy in price, credit, budget, insurance and other spheres of state administration through stimulation of production, development agricultural market and ensuring food security of the population.
According to Article 3 of the Law of Ukraine "On State Support of the Agriculture of Ukraine" [10], the state regulates wholesale prices of certain types of agricultural products by establishing minimum and maximum purchase prices, in compliance with antimonopoly legislation and fair competition. The essence of state price regulation is the implementation by the Agrarian Fund of state interventions in volumes that allow establishing the equilibrium price at a level not lower than the minimum and not higher than the maximum purchase prices.
Conclusion. State regulation of the grain market is focused on the following measures:
S price regulation to avoid sharp price fluctuations;
S formation of food reserves to ensure food security;
S regulation of export-import operations through the definition of tariff and non-tariff trade conditions in order to protect the domestic producer from external unfair competition;
S income support of agricultural producers.
There are certain shortcomings in the existing system of state regulation of these processes. These include the limited financial resources allocated to each of these measures. In the event of sharp and significant price fluctuations on the grain market, state structures will not have enough resources to cover price jumps. Maintaining the income level of commodity producers is passive and serves as a development compensator [12].
From the point of view of state regulation, measures aimed at continuous monitoring of its condition are important directions for the development of the grain market. This will save resources in case of sharp price fluctuations. In addition, forecasting the development of the grain market is an important management tool.
Maintaining the income level of commodity producers and stimulating the development of the cultivation of grain crops should include not only compensation for losses received as a result of irrational management. State support is aimed at creating conditions for development through the use of methods of targeted regulation and direct payments, the formation of favorable conditions for innovative development (cheap loans for updating the material and technical park through innovations), the formation of rules for economic activity on the grain market (transparency in refunding value added tax to exporters, criteria for receiving financial assistance, etc.).
References
1. Agriculture of Lviv region 2021: statistical collection. Main Department of Statistics in Lviv Region, 2022, Lviv, 101 p.
2. Bakum M. M. (2011). Theoretical principles of using reserves to increase the economic efficiency of grain production. Bulletin of the Sumy NAU. 2011. (5/1). P. 62 - 67.
3. Berezivskyy Z. P., Berezivska O. Y. Prospects of agrarian sector development of Lviv region, Ukraine. Scientific Papers Series "Management, Economic Engineering in Agriculture and Rural Development", 2021.21 (3/2021). P. 205 - 210.
4. Borodina O. M. State support for agriculture: concept, mechanisms, effectiveness. [online]. Available: http://www.ief.org.ua/Arjiv_EP/Borodina106.pdf [Date of application 03/03/2023].
5. Demyanenko M. Ya., Sabluk P. T. (2011) State policy of financial support for the development of the agrarian sector of the agricultural sector: Monograph; edited by M. Ya. Demyanenko. K.: NNC IAE. 372 p.
6. Kozlovskyi S. V., Kireeva E. A., Zhurakivskyi E. S. (2016). Toolkit of the state agrarian policy to ensure regional economic security of the agrarian industry of Ukraine. Economy and the state. Kyiv. 2016. (4). P. 9-14.
7. Mazur G. F. (2013). Improving the mechanism of state regulation and stimulating the development of agro-industrial production. Economy of agro-industrial complex. Kyiv. 2013. (2). P. 21-25.
8. Pleskach V. L., Kulyk A. V. (2013). Methodological principles of state regulation of financial and economic development. Finances of Ukraine. 2013. (10). P. 27-35.
9. On grain and the grain market in Ukraine: Law of Ukraine. № 37-IV. 07/04/2002. [online]. Available: http://search.ligazakon.ua/l_doc2.nsf/link1/T020037.html. [Date of application 03/10/2023].
10. On state support of agriculture of Ukraine: Law of Ukraine. № 1877IV. 06/24/2004. [online]. Available: http://zakon4.rada.gov.ua/laws/show/1877-15. [Date of application 03/04/2023].
11. Statistical Yearbook of Lviv region for 2021. Main Department of Statistics in Lviv Region, 2022, Lviv, 345 p.
12. The Concept of the state target program for the development of the agrarian sector of the economy for the period until 2022: Order of the Cabinet of Ministers of Ukraine. № 1437-r, 12/30/2015. [online]. Available: https://zakon.rada.gov.ua/laws/show/14372015-%D1%80#Text [Date of application 03/03/2023].
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