Ukrainian rapeseed exports could be halted for at least a week owing to confusion over customs documents following the introduction of a 10 per cent duty on rapeseed and soybean exports, farming union UAC said on Tuesday.
Ukraine is a leading exporter of rapeseed and soybeans, mostly to Europe, and the duty could create short-term price volatility, although producers and traders expect the government to intervene to prevent any potential longer-term implications.
Ukraine's parliament passed a bill in July imposing the duty on exports of the two oilseed crops, aiming to increase domestic processing volumes and boost revenues for a state budget strained by the war with Russia.
The law came into force on September 4. While it imposes the duty on exports by traders, farmers selling their own rapeseed and soybean products are excluded.
Vessels currently in ports have been loaded with produce from both traders and producers, however. Neither the traders nor customs officials are in possession of the list of documents required to determine who needs to pay the duty and who is exempt.
"No one understands anything, and this week, most likely, no one will go anywhere," UAC said in a report.
"If on Wednesday the government does not adopt a resolution on the list of documents, traders predict that rapeseed exports may stop for a long time," it said, adding that if exports resume, there would be no impact on prices.
UAC said the government had already held two special meetings, but no decision had yet been taken.
The economy ministry did not respond to a Reuters request for comment.
The farm lobby UCAB asked farmers on Tuesday to refrain from shipping rapeseed until the issue is fully resolved.
UAC said the country exported about 640,000 tons of rapeseed from July to early September.
(Reporting by Pavel Polityuk; Editing by Kevin Liffey and Joe Bavier)
