UGA opposed the increase in tariffs for railway transportation of grain

At the same time, the Ukrainian Grain Association (UGA) supports the initiative of Ukrzaliznytsia regarding the unification of tariffs for freight transportation.

UGA is categorically against another 11% increase in tariffs for railway transportation of grain proposed by Ukrzaliznytsia. This was reported in the press service of the Association.

Representatives of the agricultural sector believe that such a decision will have serious consequences for farmers who have already suffered significant losses due to Russia’s aggression. Thus, according to the data of the Agricultural Center of the Kyiv School of Economics, the total losses of the agricultural sector of Ukraine since the beginning of the full-scale invasion are estimated at 80 billion dollars.

Therefore, the increase in tariffs, according to the association, will make Ukrainian grain uncompetitive on the world market. At the same time, exporters will be forced to lower purchase prices due to increased logistics costs, which will further worsen the financial condition of farmers.

UGA representatives emphasize that in previous years, in particular in 2021-2022, “Ukrzaliznytsia” has already significantly increased tariffs for grain transportation, which led to a 96% increase in the cost of transportation.

After the start of the war, the tariffs increased again – as a result of the decrease in the volume of transportation caused by the blockade of Ukrainian seaports by Russia. However, with the opening of the Ukrainian sea corridor, grain exports resumed, and the volume of rail transportation increased significantly, approaching pre-war levels.

At the same time, UGA supports the initiative of Ukrzaliznytsia regarding the unification of tariffs for cargo transportation, as it believes that the cost of transportation of one ton of cargo should be the same regardless of its type.

According to UGA, the opening of the Ukrainian sea corridor significantly expanded the volume of transportation of Ukrzaliznytsia, which increased its profits. Instead of raising tariffs, the Association suggests that “Ukrzaliznytsia” optimize its own costs and increase work efficiency to avoid unprofitability.

As USM wrote, 1,000 wagons with grain are currently being unloaded in the ports of Great Odesa.