The Agrarian Union of Ukraine believes that the state needs to immediately cancel grain export duties and resume VAT refunding to grain exporters to stabilize the price situation on the domestic market.
"The state should immediately cancel grain export duties and resume VAT refunding to grain exporters," Agrarian Union of Ukraine Chairman Hennadiy Novikov said at a press conference at Interfax-Ukraine on Wednesday.
He noted that at present a grain price is being formed on the market that is very close to the production cost of grain. This price situation is caused both by global trends and the effect of export duties and the cancellation of VAT refunds.
The expert said the price of Ukrainian grain is being affected by Russia’s entering the world markets, as it is offering second class wheat at a price of $235- 240 per tonne (FOB, Novorossiysk). Such a price level, according to him, "puts pressure" on the Ukrainian market, which has to factor in high customs duties. In addition, the expenses of Ukrainian farmers are increased by the need to dry grain because of rain.
Along with this, Novikov said, with reference to data from a number of companies, that such expenses are Hк 60-70 per tonne.
