Ukraine's grain exports show on-year decrease

Ukrainian grain exports fell by around 45% in April 1-14 from the same period last year, as the government's delay in reimbursing exporters for value-added tax discouraged shipments out of the country.

Exports dropped to 377,400 tonnes in April 1-14 from 691,190 in the same period in March, analyst ProAgro said on Monday (Apr 19).

The consultancy said in a statement that wheat exports fell to 95,010 tonnes from 312,200, while corn shipments fell to 78,040 tonnes from 193,250. ProAgro said Ukraine exported its wheat mostly to Egypt and Libya, while corn was exported mostly to Egypt and Syria.

Ukrainian grain traders this month said exports could fall to about 700,000 tonnes in April from 1.4 million in March. The sales are likely to fall to 600,000 tonnes in May and to 500,000 in June.

The delay by the government in repaying value-added tax that exporters pay on shipments of grain is likely to erode shipments from Ukraine, leaving an accumulation of grain that could undermine domestic prices at the start of the 2010-2011 season.