October 8, 2010

Ukraine's leader confirms grain export quotas

The Ukrainian government confirmed it imposed grain export quotas "due to a severe drought in summer [that] diminished harvests," Ukraine's Deputy Prime Minister Andriy Klyev said Thursday (Oct 7).

"According to government's decision, grain exports this year will be limited to two million tonnes of corn, 500,000 tonnes of wheat and 500,000 tonnes of barley," Klyev said at a briefing adding the decision was made on Monday (Oct 4).

The quotas will be in force until the end of the year, "but could be lifted earlier," he noted.

The government's decision was criticised by Ukrainian Grain Association "as a move to hurt both, traders and producers."

Earlier Thursday (Oct 7), head of Ukrainian parliament's committee on agrarian policy and land relations Gregory Kaletnik said the government had introduced quotas on grain exports to ensure the country's food safety.

The news came only two days after Deputy Economy Minister Anatoly Maksiuta said Tuesday (Oct 5) that export quotas would be introduced only in the case of a threat to Ukraine's food security.

Ukrainian lawmakers on Wednesday (Oct 6) voted against the Communist Party's proposal to introduce a moratorium on grain exports, local media reported.

Ukraine dropped proposals to impose grain export quotas in August, which had been drafted with a view to controlling domestic prices.

Analysts said Ukraine could export from 13-14 million tonnes of grain in the 2010/2011 marketing year, 32%-37% less than previous season.

The Ministry of Agrarian Policy estimated in its latest forecasts the country's grain harvest this year would be 38.6 million tonnes, while annual domestic consumption would be 24 million tonnes.