October 20, 2011

Ukrainian export duties removal will not affect crop prices

Ukraine's wheat and corn exports duties cancellation will not cause the grain prices on the market to increase until the end of 2011, said the President of the Ukrainian Agrarian Confederation.

Kozachenko noted that the high level of competition and overload of grain market prevent prices to increase. There no reasons to have an impact on the growth of the cost of grain till the end of 2011.

Kozachenko also expects that the President of Ukraine Victor Yanukovich will sign the law on cancellation of the export duties for wheat, which was previously passed by the Parliament.

As a reminder, Verkhovna Rada of Ukraine accepted the Law on export duties imposition from July 1, 2011 till January 1, 2012, for the following grain varieties.

Wheat (9% of the customs cost, but not lower US$23.3 per tonne); barley (14%, but not lower US$ 31.6 per tonne); corn (12%, but not lower US$27.4 per tonne).

Verkhovna Rada of Ukraine accepted the Law on export duties cancellation for wheat and corn, but save duty for barley export.

According to the estimation of the experts, in the period of July-September grain exports totalled 3.2-3.3 million tonnes.