March 16, 2011

Ukraine's grain export almost stopped on exhausted quotas

Ukraine has cancelled virtually all grain exports due to worn out export quotas, the Ukrainian Agrarian Confederation said Tuesday (Mar 15).

There remains, however, another three million tonnes of corn that could be exported, the confederation said, especially as it would provide farmers with funds for spring planting.

A reliable prognosis can be made in three or four weeks as to the volume of this year's grain harvest, it noted. At that point the government will likely decide whether the export restrictions can be lifted.

The Ukrainian government imposed a quota of 2.7 million tonnes on the export of grain between October 19 and December 31, comprising 500,000 tonnes of wheat, 200,000 tonnes of barley, two million tonnes of corn and 1,000 tonnes each of rye and buckwheat.

The grain export quota was later extended to the end of March this year and increased by 1.5 million tonnes, comprising 500,000 tonnes of wheat and one million tonnes of corn.

Ukraine's grain harvest in 2010 fell by 14.8% on the year to 39.23 million tonnes because of drought.