Minister advises exporters to change supply base in September

It is impossible to change the minimum export prices until October, so exporters are advised to clear goods on those Incoterms bases where the prices are closest to the real ones.
The Ministry of Agrarian Policy and Food has received complaints from exporters about problems with the registration of foreign economic contracts. The reason is that the real prices under signed agreements are often lower than the minimum permitted export prices. This was announced by the Minister of Agrarian Policy Taras Vysotskyі at a weekly briefing on September 18, Ukragroconsult writes.
As a temporary solution, he advises exporters to change the basis of supply.
“Each commodity item has certain delivery conditions under which the minimum export prices either correspond to or are lower than the real prices of the agreement. Today, such a recommendation is to consider the possibility of changing the basis in the terms of the contract,” the minister emphasized.
It will not be possible to quickly change the indicators themselves. Current legislation obliges ministries to set minimum export prices once a month, by the 10th. To adjust them for September, the Verkhovna Rada must make amendments to the law – and the next plenary session of the parliament will be held in October.
To eliminate the imbalance, the Ministry of Agrarian Policy has sent for approval a document that proposes to apply a discount coefficient when calculating minimum export prices until the end of the year.
“We have sent for approval a document that states that a similar discount coefficient of 0.714, which was in August, should be applied in October, November and December of this year. We see that we cannot predict the date of the end of the blockade of the ports of Great Odesа, when sea trade will be resumed. Therefore, taking into account such a future government decision, the minimum export prices will be adjusted in October, November and December,” Vysotsky explained.
Meanwhile, as USM reported the day before, purchase prices for new crop corn in Danube ports have dropped to $165–170/t CPT port.
