Agribusiness NGOs in Ukraine do not support administrative price regulations asking for abolishment of anti-dumping custom duties for ammonium nitrate and other additional implementations of duties for carbamide, mixed ammonium nitrate with carbamide.
In public letter of appeal to the Prime Minister of Ukraine Mr. Volodymyr Groysman and ministers, representatives of agro industry have negatively estimated new initiative of the Ministry of economic development and trade of Ukraine on optional partial import bans on carbamide and mixed fertilizers (carbamide and ammonium nitrate). New idea was introduced on the meeting of chemical industry representatives with government’s officials which have took place on August 9, 2016. Agrarian unions paid attention to the fact of unbalanced internal price (14-17% over export price) increase in 2014 after introduction of anti-dumping tariffs. Prices increase had place despite notable surplus of carbamide and storage facilities overloading. Along with, effect derived from new duties implementations was neglected by prices volatility which has caused an increase of fertilizers import in first quarter of 2016.
Thus, agro NGOs address Prime Minister of Ukraine to entrust Anti-Monopoly Committee of Ukraine to conduct antimonopoly investigation on Ukrainian fertilizers market and to implement fines on pricing plotters. Aiming to avoid new plots on the market of fertilizers, agro business NGOs representatives consider constant antimonopoly monitoring to be introduced by the Antimonopoly Committee of Ukraine.
“Situation when internal prices for nitrogen significantly exceed export prices is not acceptable considering both economic basis, the same as based on other optional logical issues. It’s evidential that organization export operations require additional costs including logistics causing exceeding external prices over internal prices as it is inherent to prices for Ukrainian grain inside Ukraine and outside”, stated in the letter – “Whereas, price rises on internal Ukrainian fertilizer market cause significant financial losses among agro business entities in Ukraine. Thus, only due to price difference on nitrogen market, overall losses among Ukrainian agro entities projected to reach for 7.2 B UAH during 2014-2016. Nevertheless, today the risk of “anti-dumping duties” has real perspectives”.