Ukraine is preparing a change in its agricultural sector. From August, the new regulations will ensure that exports of key agricultural products such as wheat, corn, sunflower oil, soybeans and rapeseed do not fall below official minimum prices. The ongoing war with Russia, which has distorted market dynamics, has led to the sale of Ukrainian goods at lower than desired prices in order to avoid taxes, reports News.bg.
The Ukrainian government has taken a calculated approach to bolster revenue streams. By establishing minimum export prices for certain agricultural goods, the aim is to stabilize the market and ensure fair trade practices.
Deputy Minister of Agriculture Mykhailo Sokolov shared insights during a web meeting, revealing that these minimum prices will be determined based on data from the State Customs Service, taking into account the terms of delivery from the previous month with a 10% discount . However, Sokolov pointed out that the implementation of these new rules may not be seen before August.
In May, the Ukrainian parliament took a decisive step by amending a law to incorporate these new pricing rules, which are due to officially take effect on July 1. However, Sokolov mentioned that additional government documents are needed to activate the floor price mechanism, leaving the exact start date somewhat up in the air.
Since the start of the conflict in 2022, Ukraine has enjoyed a special trade agreement with the European Union, its most important export destination. This setup is designed to facilitate smoother trade flows amid the turmoil. However, the EU had to limit the volume of imports after protests by farmers within the bloc, who argued that the influx of cheap Ukrainian imports was creating unfair competition.
Ukraine is on the verge of implementing a strategic pricing mechanism for its agricultural exports, aimed at ensuring fair trade and increasing government revenues amid challenging times. This development is eagerly awaited by traders and analysts, marking a significant shift in Ukraine's agricultural export strategy.