REUTERS
Ukraine’s Agrarian Fund intends to peg ultimate price for grain under forward contracts to foreign exchange rates, according to the acting Chairman of the Board of the Agrarian Fund Andriy Radchenko.
According to him, the current purchase price of wheat at UAH 2,500 per tonne is unfair to farmers.
"According to our expert opinions, which are based on analytical data of the Chicago Stock Exchange and domestic traders, the target price of wheat is $190 -200," Radchenko said.
"Based on the target price of wheat and the dollar exchange rate, we are increasing the calculated price under forward contracts up to UAH 5,000, or UAH 5,200-5,300 UAH for third or second class wheat," Radchenko added.
He also noted that the Agrarian Fund plans to increase advance payments under forward purchases from 50% to 65%.
"We want two-thirds to be contracted, or 65% of the target price," the chairman said.
Radchenko also said that during the first phase of forward purchases in 2015 the Agrarian Fund contracted for 781,000 tonnes of grain, of which 752,000 tonnes was wheat of the second and third classes.
As UNIAN reported earlier, within the framework of forward purchases program for grain crops in 2014, the Agrarian Fund purchased 910,000 tonnes of grain, against an initial plan of 1.2 million tonnes.
The Agrarian Fund was established in 2005, which led in 2013 to the establishment of Establishment of Joint Stock Company Agrarian Fund.
The Fund is in charge of carrying out forward purchases and exercising state control over pricing policy in the agricultural sector.