December 17, 2010


Grain and Feed Trade Association wants Ukraine grain market to improve



The Grain and Feed Trade Association (GAFTA) hopes for improvement of work on the grain market of Ukraine next year at the expense of the establishment of the clear and predictable rules of its functioning, said Anna Golodova, the Director of the Office of GAFTA in Ukraine.


According to Golodova, the situation on the grain market of Ukraine in the current marketing year causes concern to the world grain public.


Vladimir Klimenko, the President of Ukrainian Grain Association, also hoped that problems of grain exports from Ukraine will be solved in accordance with civilised rules and the country will provide grains volumes to the foreign markets, provided by balances.


According to him, since the beginning of the current MY, Ukraine exported about 0.8 million tonnes of corn and 2.1 million tonnes of barley and wheat.


Klimenko noted that grain export trading from Ukraine to date is done accordingly to licenses issued previously and they are valid till December 31, 2010. At the same time, he doubted that grain traders will be able to export quoted grains volumes before January 1, 2011.


Klimenko also announced that the new Tax Codex provides VAT refund cancellation for grain exporters. According to him, it will cause grain purchasing prices decrease from July 1, 2011, by 20%. He is assured that the VAT refund for grain exporters is necessary due to the fact that the norm cancellation may cause the essential grain production profitability slump and grain production volumes decrease in the country.