March 7, 2011

Ukraine should avoid grain-export access curb

After a draft law that would limit cereal shipping was earmarked for a parliamentary vote, the Grain and Feed Trade Association (Gafta) said that Ukraine should refrain from stopping access to grain exports.

"Gafta is very concerned with the latest developments in Ukraine because they may cause the freedom of export of grains from the country to be limited," the Kiev office of the London-based association said.

The measure would limit exports to grain producers, so-called state agents appointed by the government and companies making advance payments. Producers could ship only cereals they grew themselves, and companies seeking to export would be asked to pay at least half the value of the grain they aimed to deliver.

The Ukrainian parliament's agriculture committee approved the draft on March 2 and recommended its passage in first reading before the legislature. The country will export 5.5 million tonnes of wheat, an equal amount of corn and four million tonnes of barley in the current marketing year for each crop, according to USDA.