On the domestic market of Ukraine, grain prices are at a level lower than the cost of cultivation. With the opening of sea exports, as a result of the entry into force of the Istanbul Agreement, there were expectations on the market about a possible increase in grain prices. However, there was no significant one.
The UAC Deputy Chairman Denys Marchuk told about this situation during the broadcast of Media Center Ukraine—Ukrinform.
"In the middle of Ukraine, we do not see a sharp increase in grain prices with the beginning of the unblocking of the ports. The cost of cultivation is much higher than the purchase prices of traders. If the cost price of a ton of wheat is UAH5000-5500, then it is purchased at UAH4500. Unfortunately, there was no internal jump. But there is a positive point: with the start of the Istanbul Agreement, the world price for grain has gone down, and this is a plus for countries in need, because global cataclysms can be avoided when there is export from Ukraine," said Denys Marchuk.
Anyway, Ukraine needs to expand exports, which will bring currency to the country and give farmers working capital.
"We have a lot of remaining agricultural products, about 17 million tons, 25 million tons of the new crop have already been gathered. We need implementation so that farmers have working capital, and exports will bring foreign currency into the country," Denys Marchuk added.
Tuesday, 23 August 2022