October 12, 2010

Ukraine's grain export quota proposed at 2.7 million tonnes

Ukraine's Economy Ministry on Monday (Oct 11) proposed grain export quotas of a combined 2.7 million tonnes for the rest of 2010.

The ministry proposed that the government introduce a quota of two million tonnes for corn, 500,000 tonnes for wheat and 200,000 tonnes for barley.

The proposal will go to the government for consideration, possibly on Tuesday (Oct 12).

Ukrainian government officials last week said Ukraine would limit its grain exports for the rest of this year but needed some days to clarify what the volumes would be.

The Black Sea region, one of the world's leading grain producing areas, was hit by drought this year.

Russia introduced a grain export ban in August, which pushed global prices up and forced Ukraine's government to consider possible grain export curbs of its own.

According to Agriculture Ministry forecasts, Ukraine could harvest about 38 million tonnes of grain this year, down from 46 million in 2009.

The country has become the region's main exporter since the Russian ban and officials fear that the strong foreign demand could leave it short of flour for bread. Its domestic consumption amounts to about 26 million tonnes of grain per season.

First Deputy Prime Minister Andriy Klyuev last week said the total quota volume could reach three million tonnes, including two million of corn and 500,000 tonnes of each wheat and barley.

Agriculture Minister Mykola Prysyazhnyuk, however, said his ministry would propose that the government limit corn exports at three million tonnes, wheat at one million tonnes and barley-of which the country had limited stocks-at up to 150,000 tonnes.