February 7, 2012

Ukraine to export two million tonnes grains monthly

Until the end of the current marketing year (MY, July 2011/ June 2012) Ukraine will export two million tonnes of grains every month, projected Nikolai Prysiazhnyuk, Minister of Agrarian Policy and Food of Ukraine.

According to the Minister, unfortunately the current rate of grain exports from the country is lower compared to the expected ones.

He explained that the situation is caused by several factors. In particular, the government acknowledged that it was a mistake to make a decision on imposition of the customs duties on grain exports in the first half of the present MY.

Besides, N. Prysiazhnyuk believes that cancellation of the VAT refund for grain traders also provided the negative effect at the export rates. The State Administration of Railway Transport ("Ukrzaliznytsia") failed to cope with transportation of grain volume, which the country produced.

The Minister found it difficult to forecast the possible export volumes of grains in the current marketing year, noting that it is likely to be lower than it was expected in the autumn of 2011.

According to him, since the beginning of the current marketing year, Ukraine supplied 11.5 million tonnes of grains on foreign markets against 12.2 million tonnes in the same period of 2010/2011 MY.

As a reminder, previously the Ministry of Agrarian Policy forecasted grain exports from Ukraine in 2011/2012 MY at the level of 26 million tonnes.