February 1, 2012

 

Ukraine to lift VAT on corn seed imports

 

 

In a bid to cut their prices, Ukraine is likely to remove the value added tax on imports of corn seeds, the Farm Ministry said on Tuesday (Jan 31).

 

The ministry said in a statement it had proposed to the parliament to remove VAT for the 2012 corn sowing period until May 1.

 

Drought during the 2011 winter grain sowing damaged about a third of Ukraine's winter grains, mostly winter wheat, and the Farm Ministry has said farms could reseed the damaged area with corn, barley and oilseeds.

 

The ministry has said the area under corn could rise to 4.3 million hectares in 2012 from 3.5 million hectares in 2011.

 

Analyst Ukrainian Agribusiness Club said this week the increase in the corn area was likely to boost the corn harvest to 25 million tonnes in 2012 from 22.5 million in 2011.

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