Ukraine to End Compulsory Registration for Farm Exporters, Introduce Minimum Prices
Source: DairyNews.today
Ukraine plans to eliminate mandatory registration and licensing requirements for agricultural exporters, replacing the current system with a mechanism for setting minimum export prices, the Ministry of Agriculture announced. The new system is expected to take effect in December, addressing issues of tax evasion and price distortions stemming from Russia's invasion.
Under the revised policy, minimum export prices for key commodities will be set monthly by the ministry, with updates issued on the 10th of each month.
Currently, exporters must register in a special agricultural register or obtain individual licenses for each transaction if unregistered. The new mechanism aims to simplify the process, encouraging compliance while ensuring fair export valuations.
The government introduced the policy in response to market distortions caused by domestic purchases of agricultural goods at artificially low prices. Such practices have allowed some traders to avoid taxes by exporting undervalued products.
The minimum price system will apply to major agricultural exports, including wheat, corn, sunflower oil, soybeans, and rapeseed—products that remain Ukraine’s largest source of foreign revenue.
Ukraine has shipped 14.1 million metric tons of grain in the current marketing year, which runs from July 2024 to June 2025, according to official data. The country continues to be a global leader in grain production and exports despite the challenges posed by the ongoing conflict.
Agriculture Minister Vitaliy Koval told Reuters the mechanism, initially planned for an August launch, was delayed due to legislative requirements but is now on track to be implemented in December.
“This new system will simplify export operations while ensuring fair pricing practices for our key agricultural products,” Koval said.
The policy is expected to bring greater stability to Ukraine's agricultural sector, boosting revenues while maintaining its position as a key global supplier.
Currently, exporters must register in a special agricultural register or obtain individual licenses for each transaction if unregistered. The new mechanism aims to simplify the process, encouraging compliance while ensuring fair export valuations.
The government introduced the policy in response to market distortions caused by domestic purchases of agricultural goods at artificially low prices. Such practices have allowed some traders to avoid taxes by exporting undervalued products.
The minimum price system will apply to major agricultural exports, including wheat, corn, sunflower oil, soybeans, and rapeseed—products that remain Ukraine’s largest source of foreign revenue.
Ukraine has shipped 14.1 million metric tons of grain in the current marketing year, which runs from July 2024 to June 2025, according to official data. The country continues to be a global leader in grain production and exports despite the challenges posed by the ongoing conflict.
Agriculture Minister Vitaliy Koval told Reuters the mechanism, initially planned for an August launch, was delayed due to legislative requirements but is now on track to be implemented in December.
“This new system will simplify export operations while ensuring fair pricing practices for our key agricultural products,” Koval said.
The policy is expected to bring greater stability to Ukraine's agricultural sector, boosting revenues while maintaining its position as a key global supplier.
