December 1, 2011

The Agrarian Policy and Food Minister Mykola Prysiazhniuk has been urged by the Grain and Feed Trade Association (or GAFTA) to support free grain exports in 2012.

Ukrainian News learned this from an open letter of GAFTA to the minister, the wording of which was made available to the agency.

"GAFTA applies to you with a request to support the position of members of the association concerning inadmissibility of introduction of restrictions on grain exports in 2012," reads the letter.

The regional trading committee adopted the decision to apply to the minister at its meeting in Kyiv on November 23.

Members of the committee of GAFTA express their concerns over perspectives of the development of the Ukrainian grain market and hope that the government of Ukraine does not plan introduction of any restrictions on grain exports in 2012 in the view of the negative effects of the grain export quotations and export duties on the farming sector in 2011.

According to the letter, the restrictions on grain exports in 2010 and 2011 trimmed the grain exports, cut the domestic purchase prices of grain, reduced revenues of agribusinesses, causes bankruptcy of some agrarian companies for inability to hold the sowing campaign. The restrictions also affected the competitive capacities of agrarian companies and resulted in loss of positions on foreign markets.

GAFTA notes that the restrictions on exports caused a negative reaction from the side of the World Trade Organisation and the international community and affected the international trade relations and the reputation of Ukraine on the whole.

GAFTA notes that the high grain harvest in Ukraine of this year provides a good opportunity to restore the positions of Ukraine on the international grain market.

As Ukrainian News earlier reported, the Agrarian Policy and Food Ministry on November 14 estimated the grain exports since the start of the current marketing year at 5.948 million tonnes.

Export duties on wheat and corn dropped from October 22, 2011.