The cost of key inputs for agricultural production, particularly fuel and mineral fertilizers, remains a pressing issue for Ukrainian producers. The Ukrainian Agri Council (UAC) emphasizes the need for further policy solutions that would help reduce production costs and support the sector’s competitiveness.

This was stated by Deputy Chairman of the Ukrainian Agri Council (UAC) Denys Marchuk during an appearance on Kyiv TV channel.

The discussion focused on a legislative initiative to reduce the excise tax burden on fuel for agricultural producers. The initiative was envisaged in the context of harmonizing Ukrainian legislation with European standards and was intended to create more level playing conditions between Ukrainian and European producers.

“A law to reduce fuel excise duties for producers should already be in place in Ukraine, but it has not yet been adopted. Back in September 2024, amendments to excise legislation предусматривали the development of a separate solution for agricultural producers. Its purpose is to align conditions with European producers, in particular by reducing the rate to 50% of the excise tax. As of April 2026, this issue remains unresolved. UAC has already appealed to the Verkhovna Rada of Ukraine and the Cabinet of Ministers of Ukraine to revisit this initiative. We expect this issue to be brought back to the agenda in the near future,” he noted.

UAC also draws attention to the situation in the mineral fertilizers market, where significant price increases have been observed.

“The situation with mineral fertilizers is critical. Due to global factors, including escalating tensions in the Middle East, prices for nitrogen fertilizers have increased by more than 35%. In many countries, governments have already responded by reducing import duties or VAT rates to support farmers. We have appealed to the Government of Ukraine with a proposal to abolish import duties on fertilizers. This would allow producers to better prepare for the sowing campaign and increase yields,” Denys Marchuk added.

UAC notes that reducing the cost of key inputs could have a positive impact on production volumes, the sector’s export potential, and, consequently, foreign currency inflows to the country.