September 14, 2010

Ukraine bonds 0.3 million tonnes of 2010 grain harvest into food reserve

Ukraine's Agrarian Fund has contracted 302,200 tonnes of the 2010 grain harvest into the state food reserve, announced Director General Oleksandr Marinets.

"The Agrarian Fund started the purchase of grain of the 2010 harvest in July. Market contracts for 302,200 tonnes have been concluded since then," he said.

He said that since August 30 the Agrarian Fund of Ukraine will have to abide by all procedures envisaged by the law entitled "About State Procurement." For this reason, the fund continues to legalise and approve of the procedures of purchase from one participant.

Oleksandr Marinets reminded that the Agrarian Fund of Ukraine has plans to purchase by the end of 2010 another 4.5-5 million tonnes of grain. The national budget envisages formation of the intervention fund of UAH3.2 billion (US$0.40 billion) for this purpose. Moreover, the issue of government domestic loan bonds for UAH5 billion (US$0.63 billion) is planned for this purpose.

The director general of Agrarian Fund of Ukraine said UAH1.19 billion (US$0.15 billion) has come to the accounts of the fund since January 1. The Agrarian Fund of Ukraine has used UAH288.4 million (US$36.46 million) and UAH 961.6 million (US$121.55 million) remains.

He also said the grain purchased by the Agrarian Fund of Ukraine will be sent for storage to grain elevators from the list posted on the Agrarian Fund's website.

According to him, the Agrarian Fund of Ukraine does not plan purchase of mineral fertilisers this year, as well as fuel and lubricants. The fund plans to sell the remaining mineral fertilisers, fuel and lubricants with the start of the autumn field works.

The Agrarian Fund of Ukraine plans to purchase 600,000 tonnes of grain from the limited liability company Khlib Investbud under the procedure from one participant in August and September 2010. It also has plans to purchase five million tonnes of grain to the state intervention reserve for the limited liability company Khlib Investbud for a sum of UAH7 billion by the end of 2010.