Agrarian associations are speaking out against raising of railway transportation tariff rates which will lead to losses for agrarians of about 1.5 billion UAH.

An application letter about prevention of raising of railway transportation tariff rates addressed to Yevhen Kravtsov, the first deputy of the Minister of the Infrastructure of Ukraine has been signed by the Association “Ukrainian Agribusiness Club”, Agrarian Union of Ukraine, All-Ukrainian Agrarian Council, Ukrainian Agrarian Confederation, Ukrainian Grain Association, Association "Union of Poultry Breeders of Ukraine", Association of Farmers and Private Landowners of Ukraine.  

“Increasing of rates for cargo-carrying operations contrasted with slack economy of grain prices, intensification of tax pressure upon agrarian branch and overall downturns in Ukrainian economy will force Ukrainian agricultural manufacturers into rough conditions and will decrease competitiveness of Ukrainian product on international markets”, was written in the application letter. According to UCAB’s estimates the raising will lead to extra expenses of grain transportation for agrarians of about 1.5 billion UAH. 

We would like to remind that with a draft of an order of the Ministry of Infrastructure of Ukraine dated the 11 January, 2017 “About amending to some regulatory legal acts of the Ministry of Transport and Communications of Ukraine” is offered to raise cargo carrying railway transportation tariff rates in Ukraine by 25%.

Scheduled raising of tariffs on the rate 25% prominently exceeds the inflation index in 2016 (12.4%), besides, raising of tariffs for cargo-carrying transportation by 15% took place in 2016.

Need in railway transportation of grain in the period of harvest campaign in 2.3 times exceeds real volumes. “Reasonability of tariff raising is questionable. For the last three years tariffs for grain transportation in Ukraine have increased by 88%. While  PJSC “Ukrzaliznytsia”, notwithstanding constant tariff rates raising, is not able to meet requirements of agrarians in railway transportation of grain and does not supply in total amount grain cars according to previously coordinated plans with what breaks up harvest campaign and endangers export contracts” Taras Vysotskyi, the General Director of the Association “Ukrainian Agribusiness Club”, comments.