October 27, 2010

Ukraine's grain export limitations to hit producers

Any quotas, including grains export limitations, will give another impact to Ukrainian producers, stated the President of Ukrainian Agrarian Confederation.

According to the Chairman of the Entrepreneurs Council under the jurisdiction of the Cabinet of Ministers of Ukraine, Leonid Kozachenko's opinion, grain quotas distribution also becomes a problem

Besides, Kozachenko noted that Ukraine has milling grain stocks for over two years. According to his opinion, the country will have rather huge grain stocks. If quotas keep the current level, then at the beginning of the new season, Ukraine will get the record grain stocks volumes which will total over 10 million tonnes, when the average annual stocks never exceeded the level of three million tonnes. During two last years, the index formed the level of 5-6 million tonnes, but it always pressed the prices at the beginning of the new season harvesting works, noted Kozachenko.

Regarding the vessels delays in the ports, the President of Ukrainian Agrarian Confederation noted that during the second decade of October the Customs Service started to release the cargoes, though previously the department delayed grain cargoes for month and a half, but at the beginning of the third decade, factually paralysed the work of tenths sea vessels again.

Though, the issue is still not solved: why are there so little grain traders, who sustain a loss and went to the court to sue against the department? Their losses totalled tenths million Ukrainian hryvnia. According to them, the court solution of case will take a lot of time.