Analytics, Baltic States – CIS, Economics, Foodstuff, Legislation, Lithuania, Markets and Companies

"Production price may be affected indeed. If there will be no markets to sell to and the state will not help, then the price may drop. Perhaps people find this attractive but what price drop means for economy is that companies do not receive certain amount of revenue, cannot sustain their sales volume, pay producers a certain price and retain jobs. Thus, such short-term price reduction perhaps seems attractive if it is because of overproduction in the market or comes from other states, yet, economically it is not beneficial for the country," the minister told the Ziniu Radijas radio on Tuesday.

In that case, if VAT for meat producers and the vegetable grower as they ask will be reduced to 5%, prices will fall and for shopping centers it would be beneficial, the minister added.

The minister of agriculture favourably assessed possible intervention buying, which would be advantageous to producers, although negotiation with the European Commission could last for a month.