September 30, 2011


Ukraine considering grain export duties extension



Ukraine will keep its customs duties on grain exports until the end of 2011 at least, but a government proposal suggests extending the export duties by another year to January 2013.


The Ministry of Agrarian Policy had initially suggested a cancellation of the grain export duties, but was overruled by the Cabinet of Ministers on September 28, according to a government source.


Export duties for wheat stand at 9% but not less than EUR17 (US$23) per tonne, corn at 12% but not less than EUR20 (US$27) per tonne, and barley at 14% but not less than EUR23 (US$31) per tonne.


The government proposal to extend the grain export duties includes an expansion for duties on rapeseed, soy, and sunflower oil, in an effort to raise needed revenues.


Farmers and experts have opposed the export duties, claiming that Ukraine is losing market positions to competitors from other countries such as Russia.


Richard Feltes, vice president of US-based broker RJ O'Brien, said that the proposal was "not the smartest move in an increasingly competitive global wheat export climate".

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