Soon agricultural associations will prepare reasoned proposals and present specific versions of the norms on the procedure for determining bottom export prices, the introduction of which is provided for by the law on the application of the export security regime for the period of martial law (No. 2881-IX dated January 12, 2023).

As the Ministry of Agrarian Policy reported on its website on Tuesday, this decision was made following an online meeting held on March 20 at the initiative of agricultural associations, the purpose of which was to discuss the order in which the Cabinet of Ministers should determine and calculate bottom export prices.

After the preparation of the proposals by market participants, the Ministry of Agrarian Policy, the Ministry of Economy, the National Bank of Ukraine, and the Tax Committee of the Rada will work on them and reduce them to the optimal one.

"Together with exporters, we want to reach a consensus on the basis of what sources of information and how exactly the bottom price will be determined. With what frequency and for how long bottom prices are set. How will the bottom price be determined if the contract is signed several months before exports," advisor to the Minister of Agrarian Policy and Food Mykhailo Sokolov is quoted in the report.

According to him, during the discussion, representatives of the associations insisted that it is a mistake in Ukrainian realities to use quotes from world exchanges when determining bottom prices, and it is more correct to take information from relevant analytical agencies, including state ones, at export prices in Ukrainian ports or other border crossing points.

In particular, UCAB representatives proposed that the bottom price is determined by taking the average market price under the terms of CIF-port without VAT at the NBU rate and reducing it by 40%, when reviewed at least once a month.

The Ministry of Agrarian Policy recalled that the above law provides for amendments to the Tax Code and some other legislative acts. However, in order for this mechanism to work, it is also necessary to adopt amendments to the Customs Code, which are being prepared for submission to the Rada by the secretariat of the Tax Committee.