Ukraine: few factors are delaying the imposition of quotas

Kiev / UA. (ami) Several factors impacted on the decision of the Government of Ukraine regarding the delay of grain export quotas imposition. Vladimir Klimenko, the President of Ukrainian Grain Association, told APK Inform-Agency that as of to date Ukraine completely harvested barley and wheat sowings, crop volumes are sufficient and there is the possibility to export nearly ten million tonnes of the reporting grains, all these factors impacted on the decision of the Government.

While commenting the decision of the Government, Klimenko also noted that according to the Agrarian Fund announcement, the Fund has already purchased 1,1 million tonnes of milling wheat. If it is true, then it is necessary to have nearly 800 to 900 thousand tonnes of milling wheat in the Fund, in order to have the stable bread prices in the country, noted the expert.

Besides according to Klimenko, various public organizations, in privately, Ukrainian Grain Association, announced that if the Government wishes to impose export quotas for grains, then the imposition should not come before September 15, 2010. Also, the Farmers Association of Ukraine stated that it takes the harder position regarding quoting than Ukrainian Grain Association.

The announcements of GAFTA and the American Chamber of Trade in Ukraine, and the American-Ukrainian Business Council also impacted on the decision of the Government.

As the result according to the President of Ukrainian Grain Association, if Ukraine does not impose grain export quotas till October 01, such situation will allow to agricultural producers to get the additional profit, it will allow to traders to export all grain volumes which are on the vessels and in the ports to date, in order to prevent grain decaying as it was in 2006. Klimenko noted that, first of all, vessels delay in the ports does not come in accordance with the legislation, second, it causes the essential demurrage losses. The State officials have no right to take such managerial decisions, when the international scandals appear.

As a reminder, Nikolay Prysiaghniuk, the Minister of Agrarian Policy announced on August 25 that the Cabinet of Ministers will not impose grain export quotas in the nearest future (see bakenet:eu on 2010-08-26).