Agricultural Committee Meeting

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Agenda:

On April 8, the Chamber Agricultural Committee held its regular meeting devoted to the grain market update, discussion of Committee’s further actions on VAT regime change resulting from adoption of Draft Law #4576, discussion of the further line of actions with Agricultural Inspection on a number of critically important issues (liberalization of grain quality certification, gran mixing in port silos, etc.).

At the beginning of the meeting, Mr. Sergey Feofilov, UkrAgroConsult, briefed attendees about the situation on the grain market. He stated that export season for major grain crops is almost over, while sunflower oil exports gained competitive advantages due to hryvnya devaluation as well as removal of import duties by the European Union. He mentioned that annexation of Crimean Peninsula will not have a great impact on cereal production (only 2% of the total output), but it will significantly impact the production of fruits and vegetables.

As the second agenda item, Committee Members discussed the situation with export VAT for grain, which resulted from adoption of the Law of Ukraine #713-VII, and concluded that there is a clear demand for transparent and stable taxation system as well as the need to address the Government of Ukraine with the request regarding the tax administration for grain stocks that appeared to be in transition due to the change of tax regime in the middle of marketing season.

Participants were informed that the Draft Law #3882 “On Amendments to Certain Legislative Acts of Ukraine regarding Support of National Agricultural Producers”, which provides exclusive rights for grain export rights only to agricultural producers or legal entities affiliated with them, is about to be submitted for consideration of the profile Parliamentary Committee and concluded that the Chamber should post again its Letter requesting relevant decision-makers to abolish further consideration of the Draft.

Finally, participants agreed that meeting with the Agricultural Inspection would be a positive factor, however there should be a strong emphasis that the industry expects abolishment of grain quality and warehouse certification in Ukraine.

For more detailed information, please click here to view the Minutes.