The Cabinet of Ministers approved the mechanism of minimum grain prices: business protests
On August 20, the Cabinet of Ministers approved a procedure for setting minimum export prices for certain types of goods, Ekonomichna Pravda reports. This mechanism was invented to combat black exports.
This was reported by the government's representative in the Verkhovna Rada, Taras Melnychuk.
The Ukrainian government has taken the last step to set minimum export prices for agricultural products. Ukrainian farmers are strongly opposed to the proposed mechanism.
It is reported that minimum export prices will be set by the Ministry of Agrarian Policy in US dollars per kilogram.
It provides for a ban on exports under contracts for the supply of wheat, corn, sunflower oil, soybeans, rapeseed and some other agricultural products where contract prices are lower than the minimum allowable prices.
The minimum prices will be calculated based on the official customs data for the previous month.
"The introduction of minimum export prices will put half of Ukraine's exports at risk," the Ukrainian Grain Association said in a statement.
The association believes that the new mechanism will effectively destroy the system of forward contracts and deprive agricultural enterprises of bank loans secured by these contracts.
Oleksiy Artemchuk
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