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KIEV, March 31 (Reuters) - Ukraine\u2019s grain traders union UGA said on Monday it and the UAC agricultural producers\u2019 union had demanded the government suspend additions to the mechanism for determining minimum export prices, warning the changes could disrupt exports.<\/p>\n
In December, Ukraine introduced a new system for exporting essential agricultural products, including grain, which implies a ban on sending shipments of products at prices below those set by the Ministry of Agriculture.<\/p>\n
In early March, the government changed the rules, saying that the minimum export price for a given good cannot be lower than the minimum price for that type of good under the same delivery conditions as the previous month.<\/p>\n
\u201cExport prices naturally fluctuate depending on global trends, seasonality, logistics, demand and competition,\u201d UGA said in a statement.<\/p>\n
\u201cAn artificial ban on price reductions ignores market realities and threatens Ukraine\u2019s ability to conclude export contracts,\u201d he noted.<\/p>\n<\/p>\n
The union said it had asked the government to suspend the amendments and hold open consultations with companies.<\/p>\n
UGA added that it also emphasized the importance of clarifying and unifying terminology, in particular, the definition of \u201cminimum price\u201d, \u201creference price\u201d and \u201csupply bases\u201d.<\/p>\n
Ukraine is a major producer and exporter of grains and oilseeds. The finance ministry said the country has exported 32.4 million metric tons of grain so far in the July-June 2024\/25 season.<\/p>\n
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\nReporting by Pavel Polityuk; Editing by Andrew Heavens<\/p>\n<\/p><\/div>\n