Through a large number of defaults UGA will create the register of unfair contractors

2020-09-29 12:08:58
Machine translation
Through a large number of defaults UGA will create the register of unfair contractors

this season increased the number of failures of agricultural producers from the implementation of contracts for the supply of grain or oilseeds, as a result, Ukrainian Grain Association has suggested to create the register of unfair contractors.

 

amid a sharp rise in grain prices, some suppliers refuse to deliver the goods on the previously completed forward transactions, which leads to the disruption of international contracts, has undermined the reputation of Ukraine as a reliable partner on the world market, and is a threat to financial stability.

 

Forward contracts allowing suppliers of seeds and crop protection products to Finance the sowing campaign in exchange for future harvest, is a well-established practice in the agricultural market of Ukraine. Therefore, their failure will adversely affect the funding of the entire industry, including during the current planting season.

 

If 2019/20 my Ukraine exported grain on $ 12 billion in the current season will increase exports to $ 16 billion. However, companies that Finance a sowing campaign through the conclusion of forward contracts now have serious doubts that the promised grain will be delivered to them, so contemplating over whether to continue funding the agricultural sector.

 

at present, farmers that were not affected from weather conditions or other factors, refuse to perform the contract, and the number of defaults in recent years is growing rapidly. Eventually lose as the producers themselves and their creditors. Increase the number of lawsuits, and the Executive office will begin to collect debts from unscrupulous suppliers, as investors reassess the lending program of the agricultural market.

 

in addition, the failure of supplies in the domestic market will lead to the fulfillment of contracts on the external that worsen the reputation of Ukraine as a reliable partner.

 

So in the UGA proposed to create a public registry of natural and legal persons who without good reason refuses to carry out forward transactions to all market participants in the future to think about whether to cooperate with such contractors. Along with a system of fines and lawsuits is to help improve the grain market and get rid of unfair participants.

 

the UGA promises not to include in the register of suppliers, which suffered from drought and lost crops, therefore, can't fulfill obligations. To protect them UGA has offered Ukrainian agrarian Rada and the Ukrainian club of agrarian business to enter into a joint Memorandum.

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