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Grain Association opposes growth of transport tariffs and other discriminatory practices of gvt.
According to a press-release issued by Ukrainian Grain Association (UZA), the Association is strongly against the increase of transportation tariffs for grain and grain processing products, recently proposed by Ministry of Transport and Communications.
The experts of UZA are of the opinion that increase of the tariffs has no underlying economical grounds. The reference of Transport Ministry's officials to the fact that in some EU and other fSU countries the freight transportation tariffs are still higher than in Ukraine is and example of a non-systematic approach.
"Then we have to compare the prices for diesel fuel, used in agricultural production of Ukraine and Russia, the prices for gas, needed for grain drying in the above countries, or the level of agricultural products subsidies in Ukraine and the EU. To separate the transport tariffs from the general system of economical coordinates and on this ground to make comparisons with other countries is and example of narrow departmentalism, which contradicts to the interest of national economy", reads the press-release.
The means of regulation of natural monopolies' tariffs have long been firmly established throughout the world, the UZA specialists continue. Justification of expenditures, the price-costs for works or services are subjects to checks, and the level of profitability is then determined as per existing tariffs. However, Ukrzaliznytsia (the Ukrainian railway department) while increasing its tariffs has never used any similar procedure.
"Moreover, neither Transport nor Health Ministry have so far replied to the letters of Ukrainian Grain Association as regards unfair practice of charging the grain owners with car disinfection fee, and the unlawful procedures are still in existence", states the UZA release. This results in significant increase of agriproducts owners' expenditures for passing phyto-sanitary and veterinary control procedures.
Besides that, grain market operators, as well as the exporters from other brunches of agri-industrial complex, do not have any certitude as regards repayment of many months' budget indebtedness in export VAT refund.
In view of all the above-listed problems, the Grain Association expresses concern that the grain market does not already have any reserves to cover the additional costs, imposed by the governmental moves. All the unjustified additional charges will thus result in such negative effects as growth of final cost of agricultural products for consumers (which will subsequently lash on inflation on domestic market and cut competitiveness of Ukrainian products in the export ones) and cuts in agricultural producers' incomes.
"If in place of constructive work to solve the numerous problems, accumulated on Ukrainian grain market, the first move of the government in relation to the grain owners is increase of railway tariffs, this, according to our opinion, will contradict to the course of establishing partnership relations between the power and business, which has been declared by the President and Cabinet of Ministers of Ukraine", the UZA experts state in the release.
Ukrainian media have earlier reported the words of Agrarian Policy Minister Olexandr Baranivsky that Ukrzaliznytsia intended to undertake another increase of tariffs for transportation of freights, including grain and mineral fertilisers.