September 15, 2010

Ukrainian grain supply to grow up to five million tonnes

The grain stocks at Ukraine's intervention fund will grow to 4.5-5 million tonnes over this marketing year, Agrarian Fund CEO Oleksandr Marenets said.

The Law "On State Support of Agriculture of Ukraine" provides that in 2010 the grain volume at the state intervention fund should make up no less than 20% of the volume of its annual consumption. In absolute figures, it is almost 1.2 million of grain, out of these wheat makes up 1.1 million, while rye, barley and corn - make up the rest.

"At the same time, taking into consideration the situation on the domestic and foreign markets, the state leaders took a decision to supply to the state intervention fund about 4.5-5 million tonnes of grain this marketing year," the Agrarian Fund head informed.

According to him, the Agrarian fund started purchase of grain of the 2010 yield in July. In particular, over this time exchange contracts were concluded at 302,200 tonnes of grain.

He also informed that in compliance with the Law "On the State Budget of Ukraine for 2010," UAH 3.2 million (US$403,938) has been allocated from the state budget's special fund for formation of the intervention fund. Issue of bonds to UAH5 billion (US$6.31 million) is envisaged for crediting the Agrarian Fund. The Cabinet approved the relevant resolution in early July.

"In total, since the year start, UAH1.19 billion (US$1.5 million) came to our account for formation of the state intervention fund. UAH228.4 million (US$28.83) has been already mastered," Marenets added.