Summary of newspapers of the previous day – 11. 10. 2010

Increase of VAT will raise food prices more than by presented 3 %

The Minister of Agriculture Ivan Fuksa stated in a Czech television programme „Otázky Václava Moravce (Václav Moravec´s qustions) that a planned increase in value added tax rate (VAT) will raise food prices roughly by three percents. However, experience from the past shows that the mentioned VAT increase from 10 to 17 percents would lead to the most significant growth of food prices than the presented 3 %, though maybe not immediately but in a longer period. At the same time also a stronger pressure on bottom staves of production vertical can be expected, above all on farmers. In considerations on consequences of the future increase of VAT rate for foods it is necessary to take into account experience from the past.

Concrete aid for floods-affected areas: extended time payment for land and easier purchase of parcels higher above water

An extended time payment of purchase price or land hire, a reimbursement of costs for cleaning of alluviums, or an easier transfer of state lands from the administration of the Land Fund of the CR in the ownership of municipalities and individuals. The Minister of Agriculture Ivan Fuksa and a director of Land Fund Radim Zika came at mayors of municipalities affected by August floods with a concrete offer of help in Frýdland. The town was not chosen randomly. High water hit the strongest there. After this year´s damaging floods, many people got in a situation when their houses were completely damaged or on base of decision of appropriate authorities determined for demolition as incapable of living.

Weak harvest will raise wine price

Wine from this year´s harvest will likely raise in price owing to a significant increase of buy-out prices of grapes. According to the Czech Statistic Office, while vine-growers paid for one kilogram of grapes at average 11 crowns last year, this year it is 18 - 20 crowns. The reason is a significantly lower crop but also increase in electricity prices. “The higher buy-out price will unambiguously show itself also in prices of bottle wine”, a director of Vinné sklepy Valtice, Marek Šťastný said to the daily E15. Especially it will manifest in quality wines price of which moves from 50 to 100 crowns, where the biggest increment will happen in percents. According to him, quality wines are sold with minimal margins already now.

According to IFPRI, more than billion people has lack of foods

More than a billion people suffer from a lack of food at present. It results from a report published by the International Food Policy Research Institute (IFPRI) according to which the biggest problem is undernourishment in children up to two years. The Institute warns that the number of people suffering from hunger has increased over the last several years. So called Global Hunger Index (GHI) is monitored in 122 countries. According authors of the report it slightly decreased in 1990 - 206. However, it has still increasing movement at present. The research showed that the situation is the worst in states of sub-Saharan Africa.