Disparity of Prices in the Agricultural Sector of the Economy

Abstract

Agriculture is the city-forming branch of the agro-industrial complex, the share of which in recent years in the gross domestic product annually amounts to about 5%. Despite the positive dynamics of the development of the last decade, quite a lot of unresolved problems have accumulated in the agricultural complex. One of them is the disparity of prices, which consists in a faster growth of price indices for industrial goods and services used in agricultural production in comparison with the growth of price indices for agricultural raw materials and products. This hinders the development of agricultural production in solving the problem of ensuring food security and import substitution, has an impact on the level of profitability and competitiveness of rural producers. The conducted research made it possible to establish price imbalances between the economic entities of the agro-industrial complex and the need to improve the pricing system based on taking into account the real contribution of all participants.