The Cabinet of Ministers approved the procedure for establishing minimum grain prices

The Cabinet of Ministers of Ukraine approved the mechanism of minimum grain prices. Ukrainian business representatives opposed this decision.

On Tuesday, August 20, the Government approved the Procedure for approving the minimum allowable export prices for certain types of goods, the representative of the Cabinet of Ministers in the Verkhovna Rada, Taras Melnychuk, said.

It is foreseen that the level of minimum allowable export prices for certain types of goods is determined by the Ministry of Agricultural Policy, taking into account the conditions of supply, in accordance with the International Rules for the Interpretation of Commercial Terms “Incoterms”.

The minimum permissible export prices for certain types of goods, taking into account the terms of delivery, are determined in US dollars per 1 kilogram.

As a reminder, the Ukrainian Grain Association (UGA) believes that the introduction of the minimum price mechanism will lead to a significant drop in grain exports from Ukraine. In particular, the new mechanism may cause losses to the agricultural producer.

The experts of the European Business Association (EBA) also spoke against the new order. They believe that the proposed approaches could lead to the manual management of grain and oil exports – by blocking tax invoices and adjustment calculations.