September 22, 2010

Ukraine's leader queries customs checks on grain exports

Ukrainian President Viktor Yanukovich announced Tuesday (Sep 21) to examine customs checks on grain exports which, traders say, are limiting shipments to foreign buyers.

"The government must analyse the way customs' procedures are being carried out when exporting grain from Ukraine and to take measures for their improvement," stated Yanukovich.

Ukrainian customs officials, reacting to the prospect of a poor harvest after a summer drought, have imposed more stringent quality checks for exporting grain. Traders say some ships in the Black Sea and Azov sea have been held up for weeks.

After the July and August drought, Ukraine's grain crop is likely to fall to about 38 million tonnes from 46 million in 2009, the agriculture ministry says. But that is still well above domestic needs of 26 million tonnes.

After Russia introduced a grain export ban in August, the Ukrainian government proposed limiting exports of wheat and barley between September and December, but later said it had put off the final decision until October.

Earlier this month Prime Minister Mykola Azarov said the government would not introduce any limits on grain exports because it had enough grain to cover domestic needs and export demands.

But despite export curbs Ukrainian grain shipments jumped to 1.32 million tonnes in August from 764,103 tonnes in July.

The spike reflects the higher barley exports, which have not been affected by the customs service's curb on wheat exports.