Ukrainian Traders Union Criticizes Grain Transport Tariff Hike

The Ukrainian traders union UGA has denounced Ukrzaliznytsia's plan to increase grain transport tariffs by 11%, arguing it will exacerbate the plight of farmers grappling with declining global food prices and rising input costs due to the Russian invasion. Officials warn grain production is becoming unprofitable.

The Ukrainian traders union UGA has issued a strong critique of national railway company Ukrzaliznytsia's proposal to raise grain transport tariffs, stating it will worsen the situation for farmers already struggling with falling global food prices.

According to the union, an 11% increase in tariffs will further harm Ukrainian farmers who are facing losses due to the war, lower world grain prices, and disappointing crop yields this year. Ukrzaliznytsia plans to unify transport tariffs across Ukraine, potentially increasing them by around 7%.

Traders suggest that to avoid financial losses, Ukrzaliznytsia should focus on optimizing its own costs. Ukrainian harvests are anticipated to decline in 2024 due to reduced sowing areas and unfavorable weather conditions exacerbated by the ongoing Russian invasion.

(With inputs from agencies.)