Ministry of Agrarian Policy: minimum export prices will not disrupt the market
20.06.2024 - 13:09
The Ministry of Agrarian Policy plans to introduce minimum export prices for agricultural products, including grain, oilseeds and sunflower oil.
Official customs data for the previous month will be used to calculate the minimum price for export agricultural products. This was stated by the representative of Minagro Mykhailo Sokolov, ASAP Agri writes.
“We use the 5% percentile method. That is, we take 5% of all contracts that were concluded at the lowest prices and calculate the average price from them. And the obtained result is additionally discounted by 10%. Thus, this minimum calculated price will be lower than the weighted average price,” the expert explained.
At the same time, the number of transactions concluded at prices lower than the calculated minimum price is very small. Regarding the issue of forward contracts, the minimum price at the time of the conclusion of the forward will be applied. According to Sokolov, the calculated prices will be low and the contracts will be easy to fulfill.
Minimum export prices will begin to be calculated from the moment of approval of the relevant resolution by the Cabinet of Ministers of Ukraine.
USM recently wrote that after two years of full-scale war, Ukraine was able to level up the balance of grain production and export.
