Ukraine has exhausted its quota for duty-free wheat exports: now it must pay duties

Ukraine has used up its quota for duty-free wheat supplies to the European Union. Further exports of this product will require payment of duties, which reduces the competitiveness of Ukrainian grain on the European market.

This was reported by the press service of the Grain Exchange.

After the quota was exhausted, the activity of European buyers decreased significantly. They practically stopped purchasing Ukrainian wheat at the western border.

At the same time, the main directions of grain export have become the Danube ports of Ukraine and the Romanian port of Constanta.

Export restrictions amid a large supply of wheat are increasing pressure on the domestic market. Over the past week, prices for Ukrainian wheat have continued to decline.

At the same time, in Constanta, the cost of grade 2 food wheat increased to $244 per ton DAP, and grade 3 to $241 per ton DAP.

“After the EU quota is exhausted, the development of alternative routes for the export of Ukrainian wheat is becoming increasingly relevant. And the significant supply and limited throughput capacity of export logistics continue to lower domestic prices,” analysts at the Grain Exchange note.

The Ministry of Agrarian Policy and Food plans to resume consultations with the European Commission in September on revising trade conditions and increasing quotas for Ukrainian products.

In particular, alternative export routes, including through Danube ports, as well as rail and road transportation, make it possible to transport about 4.5 million tons of cargo each month out of the potential 6 million tons that the Ukrainian maritime corridor could provide.

It was previously reported that global wheat buyers are bracing for possible supply cuts due to attacks on grain infrastructure and ships in the Black Sea. Amid the disruptions, wheat prices are rising and importers are looking for alternative suppliers.

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