Ukraine is set to launch a new system for minimum export prices on key grain and oilseed shipments by the beginning of December, according to Agriculture Minister Vitaliy Koval. Here are the key points:
Purpose of the Scheme: The initiative aims to address price distortions caused by the ongoing war with Russia, which has led to increased domestic cash purchases and subsequent exports at artificially low prices to evade taxes.
Regulatory Steps: A few remaining regulatory acts are needed before the system can be fully implemented. The cabinet has already approved the procedure for establishing minimum prices.
Commodities Affected: The new pricing mechanism will apply to several agricultural products, including wheat, corn, sunflower oil, soybeans, and rapeseed, which are essential for Ukraine’s external revenue.
Pricing Calculation: Minimum permissible export prices will be determined based on data from the state customs service, taking into account the previous month’s delivery terms with a 10% discount.
Current Export Data: As of now, Ukraine has exported 14.1 million metric tons of various grains in the current 2024/25 season (July-June).
This new system reflects Ukraine’s efforts to stabilize its agricultural market amidst ongoing challenges.