Ukrainian Ministry of Agrarian Policy seeks consensus with agro-associations on minimum export prices

Source:  UkrAgroConsult

On March 20th, an online meeting was held at the initiative of agricultural associations to discuss the procedure for determining and calculating minimum export prices by the Cabinet of Ministers. Representatives from the Ministry of Agrarian Policy, the Secretariat of the Tax Committee of the Verkhovna Rada, and the Ministry of Economy also participated in the discussion.

This issue arose in connection with the adoption of the Law on the application of the export support regime during the period of military or emergency situations (No. 2881-IX of January 12, 2023), which provides for amendments to the Tax Code of Ukraine and some other legislative acts. However, in order for this mechanism to work, it is also necessary to make changes to the Customs Code, which is currently being prepared for submission by the Secretariat of the Tax Committee of the Verkhovna Rada.

“Together with exporters, we want to reach a consensus on the sources of information and the specific methods for determining the minimum price. We also need to determine the frequency and duration of setting such minimum prices, as well as how to determine the minimum price if the contract is concluded several months before the export takes place,” said Mykhailo Sokolov, advisor to the Minister of Agrarian Policy and Food.

During the discussion, association representatives emphasized that it is a mistake to use world exchange quotations to determine minimum prices in Ukrainian realities. It is more accurate to use information from relevant analytical agencies, including state ones, regarding export prices at Ukrainian ports or other border crossings.

As a result of the meeting, the parties agreed that representatives of agricultural associations will substantiate their proposals and present specific versions of the norms that will help solve the aforementioned problems. Then, the Ministry of Agrarian Policy, the Secretariat of the Tax Committee, the Ministry of Economy, and the National Bank will work on all the proposals, and an optimal solution will be proposed.

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