August 11, 2011

Ukraine eyes incentive scheme for grain exporters

Ukraine's Ministry of Agrarian Policy and Food is concerned about low level of grain exports in the new marketing year, and plans to consider the promotion of export trade, said Nikholai Prysiazhnyuk, Ukraine's Minister of Agrarian Policy and Food.

According to him, in July - early August 2011 Ukraine exported 760,000 tonnes of grains, a decrease of 30% compared to the same period last year. In the general structure of grain exports barley formed 500,000 tonnes. N. Prysiazhnyuk said that the Ministry of Agrarian Policy is concerned about such low rates of grain exports, which do not correlate with the previously announced forecast of exports in 2011/12 marketing year (MY) from Ukraine at the level of 23 million tonnes of grains. At the end of August the Ministry may initiate discussion of the further imposition of incentives for exporters at the level of the Cabinet of Ministers. First of all, the VAT refund for exporters who purchase grains directly from agricultural producers will become one of the major priorities.

The Minister noted that the initiative already found preliminary approval of the relevant committee of the Verkhovna Rada and Nikolai Azarov, Prime Minister.

As a reminder, according to N. Prysiazhnyuk grain exports from Ukraine in 2011-2012 MY may total 23 million tonnes.

In 2010/11 MY grain exports from Ukraine totalled 12.037 million tonnes, in 2009/10 MY - 21 million tonnes, in 2008/09 MY - 24.5 million tonnes.