Ukrainian small and medium-agrarian business lose more than $ 10 per ton of soybeans sold as a result of “soy amendments”, which provided for the abolition of VAT reimbursement for the export of oilseeds. They led to an increase in the difference between export and domestic soybean purchase prices. At the same time, the lobbyists of the abolition of export refunds for VAT on soybeans and rape convinced that the adoption of “soy amendments” would have no effect on the agrarian sector.

"Because of the non-refund of VAT to intermediaries, small soybean growers can not get a fair price for their crop. Internal processors, taking advantage of the fact that small farmers can not independently export their products, lower the purchase prices ", - says Deputy Chairman of the Ukrainian Agri Council (UAC) Mikhail Sokolov.

During the first months of the new 2018-2019 marketing year (MY, September 2018 - August 2019), the difference between export prices and domestic purchasing prices for soybeans increased by an average of 10 percentage points compared to the corresponding period of the previous year and is currently about 20%. In particular, in October-February 2017-2018, the average difference between soybean prices on the basis of FOB and EXW was $ 35 per ton, and in October-February of the current marketing year, this difference increased by $ 17 and is already $ 52 per ton. For comparison, the difference between the prices of corn on the basis of FOB and EXW during the same period increased by only $ 6, which can be attributed to the increase in the price of logistics costs.

Tuesday, 12 February 2019

 

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