Ukraine’s Grain Exports Face Uncertainty Amid Pricing Dispute

The union has urged the government to suspend the amendments and engage in open consultations with industry stakeholders.

Kyiv: Ukraine’s grain traders’ union, UGA, alongside the UAC agrarian producers’ union, has called on the government to suspend recent amendments to the mechanism for determining minimum export prices, warning that the changes could disrupt exports.

In December, Ukraine implemented a new system for exporting key agricultural commodities, including grains, prohibiting shipments at prices lower than those set by the agriculture ministry. However, in March, the government revised the rules, stipulating that the minimum export price for a given product cannot be lower than the previous month’s minimum price under the same delivery conditions.

“Export prices naturally fluctuate depending on global trends, seasonality, logistics, demand, and competition,” UGA stated. “An artificial ban on price reductions ignores market realities and threatens Ukraine’s ability to conclude export contracts.”

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The union has urged the government to suspend the amendments and engage in open consultations with industry stakeholders. Additionally, the UGA emphasized the need for greater clarity and consistency in terminology, particularly regarding the definitions of “minimum price”, “reference price,” and “supply bases”.

As a major global producer and exporter of grains and oilseeds, Ukraine plays a crucial role in international agricultural markets. According to the farm ministry, the country has exported 32.4 million metric tons of grain so far in the 2024/25 July-June season.

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