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Russian Producers Demand Minimum Wine Price

Posted: Wednesday, 31 October 2012 10:44

Russian Producers Demand Minimum Wine Price

October 31: If the government accedes to the request of the Russian union of vine-growers and wine producers, it may set minimum prices for wines to compensate domestic winemakers for rising world prices due to poor grape harvests in Russia and Europe, according to a media report.

The union has sent a request to the Federal Service for Alcohol Market Regulation to set minimum retail price of a 0.7-litre bottle at 110 Rubles ($3.50), according to a report in Izvestia daily on Monday. "We believe the factory minimum selling price for a standard bottle of wine (0.7 liters) should be 75-80 Rubles ($2.75) which would translate to 110 Rubles in the retail sector, said the Union President Leonid Popovich.

These calculations take into account a considerable increase in the prices of wines and wine ingredients due to the bad harvests in Russia and Europe. "Minimum prices should be reviewed every year, depending on the harvest and the world market situation, because many wines in Russia are produced from grapes imported from Italy, Spain, France, Argentina, Chile and other countries," Popovich said.

The alcohol regulator confirmed having received expert calculations and was currently studying them, according to IANS. "A resolution on minimum wine prices is in the working but it is difficult to tell when it is ready," the regulator said.

In what may not be easy in a free economy but nevertheless being recommended and considered in countries like Australia and UK to control alcoholism problem, Russia introduced minimum vodka prices from Jan 1, 2010 to fight counterfeit alcohol production and tackle rising alcoholism which reached epidemic proportions after the collapse of the Soviet Union in 1991.

According to the report, alcohol consumption in Russia is more than double the critical level set by the World Health Organisation.

       

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