Exchange grain market as a tool of stability for the agricultural sector

Arsen Ilin, Сommissioner, took part in an expert discussion on «Challenges to the agricultural sector in times of war and ways to minimise them», where he spoke about the grain exchange market and its role in stabilising the agricultural sector.

The participants discussed how exchange trading can help farmers overcome current challenges, from logistical problems to maintaining their positions in foreign markets.

The discussion underlined the importance of efficient market organisation, where exchange trading plays a key role in shaping the competitive environment and development of Ukraine’s agricultural sector. Arsen Ilyin highlighted the main advantages of exchange trading:
• transparent pricing,
• the possibility of risk hedging,
• reduction of fraud risks,
• proven counterparties and guarantees of contract performance,
• attracting investors and creditors.

The Commissioner said that the modern grain exchange market is not just a trading platform, but an effective mechanism that helps to reduce risks and make trade open and attractive to international partners. The NSSMC is working on introducing exchange instruments, as this will help Ukrainian farmers and processors to get better access to finance, minimise losses from price fluctuations and ensure the stability of their supplies even in difficult conditions.

The discussion was attended by representatives of the Ukrainian Agrarian Council, NIBULON, and the Ukraine Facility Platform.