April 18, 2022

Grains stocked on ships in Ukraine ports may deteriorate

Mykola Solskyi, Ukraine's Minister of Agrarian Policy and Food, said about 1.25 million tonnes of grains and oilseeds remain stocked on commercial vessels blocked in Ukrainian seaports, with the cargo possibly deteriorating in the near future, Reuters reported.

Ukraine previously shipped its grain and oilseeds through the Black Sea ports, but has been forced to seek new routes as the ports are blocked.

The minister said Ukraine exported up to 6 million tonnes of grain and oilseed monthly, but exports dropped to 200,000 tonnes in March 2022.

He said there are 57 vessels with 1.25 million tonnes of grain and oilseeds loaded, adding that even the captains of the ships did not plan to retain the grains on the ships for this prolonged period.

Solskyi said it depends on the vessels' cargo holds and if grains are stored for more than three months, part of the cargo could be spoiled.

Ukraine exported grains to north Africa and the Middle East, but the minister said these regions are forced to spend more to import wheat from non-Ukraine origins.

Solskyi said even if the Russian invasion into Ukraine ended tomorrow, the soaring prices for grain will remain for three to five years until the mood levels off and there will be no balance.

-      Reuters