Ukraine: Ministry to promulgate grain export quotas

Kiev / UA. (ami) On October 11, 2010, the Ministry of Economy of Ukraine promulgated the project of the decree of the Cabinet of Ministers of Ukraine «On confirmation of quota volumes for separate varieties of agricultural products, which exports to be subject to licensing till December 31, and the order of issuance of licenses».

According to the project of the document, quotas for exports of wheat and wheat-rye mixture (meslin) become established at the level of 500’000 tonnes, maize two million tonnes, barley 200’000 tonnes, rye and buckwheat 1’000 tonnes each.

The distribution of grain quotas for issuance of the licenses for exports of separate varieties of agricultural products will be provided in the base of the application of agents of economic activity, provided to the Ministry of Economy during 15 calendar days after publication of the information about the beginning of registration of the applications at the official web-site of the Ministry.

Besides, the special committee under the Ministry of Economy of Ukraine will distribute the quotas in proportion to the volumes of grains, available at exporters storages, and confirmed by the Ministry of Agrarian Policy.

First auction to be held at the end of October

The first auction for distribution of quotas for grain exports from Ukraine will take place at the end of October 2010, declared Boris Kolesnikov, the Vice Prime-Minister of Ukraine. According to Kolesnikov, auctions are the best and most uncovered form of grain export quotas distribution, and the Government plans to realize the quotas distribution through the reporting way.

According to him, the Government will not impose the quotas distribution in the same way as it was made last year, because the situation has changed a lot. The authorities also planned to share the quotas in equal parts in accordance to all received applications, but in such case the procedure will also become non-transparent, because one company can provide several application forms from several subsidiaries. That is why, auction is one of the most uncovered form of grain export quotas distribution (source: