October 31, 2005


Ukraine's government will not limit grain exports



Ukraine's government would not impose limitations on the exports of grain despite the fact that the winter grain planting campaign was disrupted by dry weather, jeopardising prospects for the 2006 grain harvest, the agriculture ministry said in a statement late Friday, quoting agrarian policy minister Alexander Baranovsky.


The ministry said in early October it proposed to limit the exports of grain until the state reserve had sufficient amounts of milling grain to cope with any possible shortage next year.


However, Baranovsky said Friday that any imposition of export limitations would not be consistent with the market economy, and that producers had the right to sell their products to whoever they chose.


He said the state needed to continue purchasing grain on the domestic market for the state reserve.


Baranovsky said export contracts signed to date amounted to six million tonnes, with over four million tonnes already shipped by exporters, 1.2 million tonnes more than on the same date last year.