October 7, 2010

Ukraine rejects temporary ban on grain exports

The parliament of Ukraine has rejected a draft resolution instructing the Cabinet of Ministers to introduce a temporary ban on grain exports until January 1, 2011.

The draft resolution instructed the government to inspect the amount of stock of grain in Ukraine in each region of Ukraine and in the country overall. With 226 votes required, only 30 lawmakers voted for the draft.

The draft also instructed the Cabinet of Ministers to take measures to ensure full provision of bread grain, fodder, and seeds in each region and to form the state food reserve for purchases on the domestic market.

According to Ukrainian media sources, the Cabinet of Ministers had postponed the consideration an introduction of grain export quotas on August 25. The Ministry of Agrarian Policy had proposed to introduce grain export quotas in the amount of 2.5 million tonnes in addition to one million tonnes delivered to ports.

The Ukrainian Grain Association requested the Cabinet of Ministers to refrain from introducing restrictions on grain exports.