September 8, 2008

 

Grain export from Ukraine may soon require certification

 
 

Grain from Ukraine in the 2008/2009 marketing year can be exported only if the deal is certified through an exchange agreement, according to a draft cabinet resolution drafted by Ukraine's Economy Ministry.

 

Ukraine's grain exports have soared twenty-fold two months into the new crop year, rising to 3.8 million tonnes in the period from just 203,000 tonnes the same period last year.

 

According to the document, before December 31, 2008 these should be exchanges licensed by the Agriculture Ministry, and from January 1, 2009 - exchanges selected at tenders.

 

When grain exports are in line with production volumes of farmers, grain can be exported if the exporter has a certificate issued by bodies empowered by the Agriculture Ministry, reads the draft.

 

The ministry said that grain production in the current marketing year is expected at 40-43 million tonnes, and taking into account remaining stocks on the domestic market, 45-48 million tonnes of grain will be available. The ministry sees demand from the domestic market at 26-27 million tonnes, which would allow the export of 13.5-15.5 million tonnes of grain in the 2008/2009 marketing year.

 

According to an explanatory note to the draft, the resolution is proposed to grant transparency to the grain domestic market and prevent a fall in the purchase prices of grain from farmers.

 

Ukraine's agricultural ministry said the government would have little financial resources to support grain prices should it fall.

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