October 25, 2010

Ukraine to start quotas selling auction for grain exports

The Cabinet of Ministers of Ukraine plans during the nearest two weeks or 10 days to start quotas selling auctions for grain exports, announced Andrew Klyuev, Ukraine's First Vice Prime-Minister, on October 21.

According to Klyuev, the mechanism of grains export quotas realisation will be accepted due to the planned alterations into the Law on the foreign economic activity, which will foresee the necessary standards.

As it was previously announced, Ukraine imposed grain export quotas at the level of 2.7 million tonnes till December 31, 2010, including wheat-0.5 million tonnes, barley-0.2 million tonnes, corn-two million tonnes, rye and buckwheat-1,000 tonnes each.

The confirmed quotas distribution order assumes that grains export licenses will be issued in accordance with the recommendations of the specially founded Committee by the Ministry of Economy. Quotas distribution is realised on the base of the applications provision, which the agrarians, who wish to export grains, introduced during 15 calendar days after publishing of the information about the beginning of applications registration at the official site of the Ministry of Economy.

The entrepreneur introduces the conclusion issued by the Ministry of Agrarian Policy, which confirms that the entrepreneur has the agricultural products volume, stated in the application, and that the entrepreneur is able to export the volume.

On October 20, the Ministry of Economy started applications acceptance for grain export licenses receiving.

According to experts estimations, in the current MY Ukraine is able to export 12-15 million tonnes of grains. In accordance to data of Ukrainian Grain Association, since the beginning of the current MY (marketing year, July 2010-June 2011) Ukraine exported nearly four million tonnes of grains, including 460,000 tonnes during the first 13 days of October.