August 24, 2010

Ukraine postpones grain export quotas decision

Ukraine, one of the world's top grain exporters, has delayed a decision to introduce grain export quotas which will more than halve exports after severe weather affected its harvest.

The government will consider plans to limit wheat exports to 1.5 million tonnes and barley exports to one million tonnes in September-December 2010, at its next weekly meeting.

Deputy Agriculture Minister Serhiy Melnik said, "The quotas issue has been delayed until the next meeting." Melnik said the government needs more data on grain volumes in ports and en route to export terminals.

Ukraine's grain harvests have been hit by severe frosts in the winter and a scorching summer. Neighbouring Russia has banned grain exports after a drought which sent global wheat prices to two year highs earlier in August and triggered inflation concerns in both nations.

Russian weather forecasters said mass planting of winter wheat for harvesting next year was unlikely to start before September 10 because of its drought, which could hamper efforts to compensate for grain lost in this year's harvest.