June 30, 2005


Ukraine to raise domestic grain prices to international levels


The Ukrainian government has announced that it would take steps to raise domestic grain prices to international levels.


Contracts to export Ukrainian grain would soon be signed at prevailing world prices while minimising the need for middlemen.


Grain would be also be purchased on the domestic market for the state reserve, and budget money has already been set aside.


In addition, the government announced its plan to offer major bakery companies cheap budget credits provided they bought grain at prices that would be profitable for agricultural producers.


The desired result would be for domestic grain prices to equal or exceed prices of the same product on world markets.