Deputy Chairman of UAC Mykhailo Sokolov during an online meeting of the Ministry of Economy, Trade and Agriculture of Ukraine with agricultural associations mentioned the need to sign a memorandum between traders and agricultural producers, which will fix the principle of partial restructuring of forward contracts.

"Our offer is to restructure exact part connected with supply commitments that corresponds to the crop failure. Therefore, if the yield in some regions is lower, for example, by 30% than were expected, it is worth to restructure 30% of commitments. We see that many farmers are in a difficult situation. Especially in those regions where there was a drought. In addition, they just cannot fulfill forward contracts because they do not have a harvest.

It is unreal to expect that they will buy grain from other producers and supply it to traders. It is unclear how many of them will make ends meet at all," Mykhailo Sokolov said.

Deputy Chairman of UAC mentioned that we are talking about only those enterprises that have really suffered because of the drought, but not about those who have a good harvest, but they refuse to supply grain.

Mykhailo Sokolov called on traders to agree with such a proposal, because it will help to resolve the problematic issue of forward contracts execution. Otherwise, the situation may develop in a negative way for the entire agricultural sector.

"If traders and farmers don’t come to agreement we will have a list of legal claims. Traders will try to force farmers to supply grain. Farmers will not be able to do this and we will still get many unfulfilled contracts, because objectively many of them do not have the necessary amount of grain. Anyway, those who already have bad cases will also receive fines, "Mykhailo Sokolov said.

In addition, Deputy Chairman of UAC noted, that farmers needed help of the state too. After all, it will be necessary to hold the relevant committees, which will certify the amount of crop losses in the regions and make the relevant acts.