Ukraine to allocate US$253 million for grain purchases

The Agrarian Fund of Ukraine is intending to allocate US$253 million to perform spot and futures grain purchases from farmers, Ukrainian Premier Yulia Tymoshenko said on Wednesday (Feb 4).

Tymoshenko said the funds will be received from grain exports and would give farmers significant support in bringing about the sowing campaign.

She also said the grain will be bought at prices approved earlier.

She said the Agrarian Fund will actively perform similar operations during the sowing period, at least two or three times.

As reported, in 2008 the Agrarian Fund bought 1.237 million tonnes of grain to the state food reserve for a total of UAH1.42 billion.

It bought 70,438 tonnes for UAH75.067 million via forward contracts, and 1.167 million tonnes for UAH1.345 billion via spot contracts.

Last year, the fund issued loans to farmers for a total of UAH788.587 million under the pledge of 1.208 million tonnes of grain.

The fund is the empowered state organisation for the realisation of the price policy in the agricultural sector where the agriculture ministry manages the fund.

US$1 = UAH8.114 (Feb 9)