of July 27, 2006 No. 257-XVI
About the organization and functioning of the markets of agricultural and agrofood products
The parliament adopts this organic law.
This law establishes the legal basis of the organization of the markets of agricultural and agrofood products by the physical persons and legal entities making, storing, overworking and/or selling these products at the national level and in production zones in the domestic and/or foreign markets, and also functioning of these markets.
In this law the following concepts are used in value:
agrofood products - natural products of plant or animal origin, including the bioproducts and semifinished products processed and/or preserved foods, derivatives from natural;
the market of agrofood products - set of the relations connected with transactions of purchase and sale including the demand and supply on agro-industrial products, and also the meeting place of sellers and buyers of goods;
the commodity line - the system of the functional relations connecting agricultural producers, keepers, distributors, implementors and other service providers and/or the commodity exchanges performing transactions with goods or with group of goods for the purpose of its or their use and/or consumption;
regulation of the commodity line - set of the legislative and institutional measures established for the line of goods or group of the goods concerning all mechanisms and levers of joint creation of the market;
council on the commodity line - the body jointly founded by partners in the commodity line and representatives of body of the public power;
the professional organization - the public organization with legal status of non-commercial association which object of activity are certain goods;
accounting commodity year - interval of time during which the goods other than calendar or agricultural year established according to the offer of council on the commodity line by the order of the Minister of Agriculture and the food industry are implemented;
the intramarket price - the price which is freely created in the market depending on ratio of the demand and supply on certain goods;
indication price - the price which in certain market conditions, expresses weighted average price in this interval of time;
posted price - the price established by council on the commodity line which is basis for determination of contract prices of purchase and sale of goods or group of goods between two parties - the seller and the buyer, without restraining effect for the competition;
intervention - the mechanism of regulation of the domestic market used for maintenance of market price of goods by means of creation from its excesses of public intervention inventory;
intervention price - the guaranteed minimum price paid by authorized body of the central public management for the agricultural products corresponding to the established quantitative and qualitative indexes;
public intervention inventory - certain quantity of the agricultural products which were purchased on internal the market of the central public management by authorized body according to the law;
export bounty - the financial aid provided for the purpose of promotion of goods on the foreign markets in case of respect for the international trade liabilities and conventions;
market information system - the system of accounting of data on the commodity line connected with management of the market and application of measures of regulation of the commodity line.
Regulation of the markets of agricultural and agrofood products provides the solution of the following tasks:
a) the organization and functioning of the markets of agricultural and agrofood products on the principles of the real and stable competition;
b) ensuring internal consumption and reducing deficit of trading balance;
c) quality assurance and safety of agrofood products;
d) growth of the income from agricultural activities and production of food;
e) strong growth of economic indicators of agricultural industry and food industry, competitiveness of their products;
f) increase in export of agricultural and agrofood products.
(1) Functioning of the markets of agricultural and agrofood products is regulated by the Ministry of Agriculture and the food industry and council on the commodity line (further - council on goods) depending on powers and the responsibility of each body established present by the law.
(2) the Ministry of Agriculture and the food industry develops market agrarian strategy and policy and provides implementation of the legal base and special regulations in the field in cooperation with partners of council on goods.
For the purpose of development of sectoral policy of the commodity line and its reduction in compliance with national market agrarian strategy and policy for each commodity line council on goods which represents organizational structure at the national level, not being the legal entity, consisting of representatives of the professional organizations for goods or on group of goods of the same industry structure and representatives of the Ministry of Agriculture and food industry, Ministry of Finance, Ministry of Economics, Competition council and in need of other bodies and organizations of the central public management is created.
(1) council on goods is faced by the following tasks:
a) stimulation, promotion and development of activities of each commodity line for the benefit of the partners working in it;
b) market research on the basis of data of the commodity line, including demand for main types of agricultural and agrofood products, annual determination of potential production, offer indicator, calculation of cost and the prices of goods;
c) offer of legislative measures on regulation of the market of the commodity line;
d) offer of schemes of financial assistance and criteria of determination of her receivers;
e) monitoring of results of realization of the taken measures, execution of the professional agreement on goods;
f) development of activities for promotion and informing partners in the commodity line on the taken measures, programs, actions;
g) consultation by preparation of the conclusions on the drafts of regulations initiated by other public organizations;
h) determination of posted price on the goods specified in part (1) Article 21.
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