August 10, 2011

UN disapproves Ukraine's milling grains global reserve plan

The UN's FAO refused the Ukrainian officials' proposal to create the world reserve of milling grains in their country, due to doubts on the practicality of setting the world reserve in the said country, stated FAO's Director of the Trade and Market Division.

According to Director D. Hallam, it is hard to use the global reserve stocks to stabilise prices. It is potentially very expensive and carries a risk of speculative attacks, if supplies are not sufficient. The mechanism of the world reserve stocks of the past is examined as having a limited impact on reducing price volatility, D. Hallam said.

But he expressed support for Ukraine's interest in increasing grain supplies on the world market, and reducing the price volatility.

As a reminder, on August 3, 2011, Nikholai Prysiazhnyuk, Minister of Agrarian Policy and Food of Ukraine, said that Ukraine proposed to the UN to host the world reserve of milling grains at the territory of the country.