Ukraine's Minister of Economy, Oleksiy Sobolev, stated that the increase in diesel fuel prices will not cause farmers to operate at a loss during the sowing campaign, and the main task of the state now is to ensure the availability of fuel and uninterrupted supply of diesel to Ukraine. He said this in response to questions from parliamentarians in the Verkhovna Rada of Ukraine on March 27, UNN reports.
Details
According to Sobolev, the Ministry of Economy is in constant contact with the market and farmers to determine what kind of support they need in the face of rising costs for spring field work.
Despite the increase in diesel fuel prices by tens of percent, 30-40%, the actual additional costs for sowing increase by only about 5%. We calculated that this is approximately an additional 40 dollars per hectare.
He added that with normal yields, the profit of efficient agricultural enterprises can range from 400 to 800 dollars per hectare. According to the minister, this means that the increase in fuel prices cannot be a decisive factor for farmers to operate at a loss.
At the same time, as Sobolev emphasized, the key issue remains not only the price, but also the physical availability of fuel on the Ukrainian market.
Our main task now is to ensure, first of all, the availability of fuel, its presence in Ukraine, the presence of diesel in Ukraine. We are also very actively working with "Ukrnafta" and with our partners to ensure uninterrupted fuel supply to Ukraine.
In addition, the government continues to implement a number of programs to support the agricultural sector. Sobolev named the "5-7-9" program as the largest of them, which, according to him, is used by farmers, and the total amount of financing is 18 billion hryvnias. Support programs for farmers in frontline territories are also in effect.
According to the minister, UAH 1.75 billion was allocated for such needs within the year. Separately, the government launched an agricultural insurance program this year, and in total, about a dozen other different aid instruments are available for farmers.
Sobolev emphasized that the government will continue to coordinate actions with the market to provide the agricultural sector with the most needed support in the current conditions.
Recall
This year, the main pressure on farmers is created by rising resource prices and shortages: mineral fertilizers can add 20-25% to costs, and diesel fuel rises to 74-80 UAH/L, which for a farm of 1000 hectares means about +1.4 million UAH in additional costs.