Ukrainian traders' union opposes plans to raise grain transport tariffs
KYIV, Sept 5 (Reuters) -Ukrainian traders union UGA on Thursday criticised national railway company Ukrzaliznytsia's plans to raise grain transport tariffs, saying it could only worsen the situation for farmers suffering from falling global food prices.
Producers and officials have said grain production is unprofitable in Ukraine due to a decrease in export prices combined with a jump in input prices caused by the Russian invasion.
"UGA believes that Ukrzaliznytsia's proposed 11% increase in tariffs for grain transport will hit Ukrainian farmers, who are suffering losses due to the war, lower world grain prices and worsening crop yields this year," the union said in a statement.
Ukrzaliznytsia has said it plans to unify Ukrainian transport tariffs and it could raise them by around 7%.
Traders said the best way to avoid making Ukrzaliznytsia unprofitable was to optimise its own costs.
Ukrainian harvests are likely to decrease in 2024 due to a smaller sowing area caused by the Russian invasion and unfavourable weather.
Reporting by Pavel Polityuk
Editing by Mark Potter
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