UZ tariffs for transporting grain have increased almost tenfold.
The restoration of Ukrainian Railways (UZ) auctions for the distribution of grain cars has led to an increase in the price of their rent almost tenfold; the price has risen from UAH 2,170/day to the maximum of UAH 20,500/day based on the auction results. Together with a 70% increase in cargo transportation tariffs from July 1, this measure will put the agricultural sector on the verge of survival, announced the Ukrainian Club of Agrarian Business (UCAB). The cost of using a grain wagon at UAH 20,500 ($690) per day, and the circulation of the wagon for ten days, provides for a transportation cost of only UAH 3,150 ($100) per ton. Farmers also need to pay the tariff for grain railway transportation, which has recently increased by 70%. These increases are necessary to pay the fee for loading and unloading wagons, the fee to foreign carriers, as well as several other additional payments, explains UKAB.