Government cancelled quotas for export of feed grain
It will positively effect Ukrainian grain market
During the meeting on February, 21, Cabinet of Ministers of Ukraine cancelled quotas for export of feed grains - wheat, barley and maize, informed Viktor Slauta, Vice-President of Ukraine on agricultural issues, according to APK-Inform.
At the same time restrictions for export of milling wheat remain.
According to the President of Ukrainian Grain Association, Vladimir Klimenko, quotas cancellation will positively effect Ukrainian grain market stabilization. Also, he noticed that everybody understands that quotas introduction prevents entry of Ukraine into WTO.
Experts of APK-Inform agency consider that after quotas cancellation feed grain trade will become more active and prices can go up, especially for maize. "Last week after announcements of the officials concerning forthcoming cancellation of quotas export activity was up. It caused rise in average prices for barley and maize by 5-10 UAH/tonne," stressed analyst of APK-Inform, Natalia Shelest. According to her it is worth expecting for activation of feed grain purchases from domestic consumers.
We remind that in September 2006, the Cabinet of Ministers introduced licenses for grains export, and in October, the Government approved the regulations on introduction of quotas for grains export. In December, the Cabinet of Ministers introduced the quota for 1.106 mln tonnes of grains for export for 2006/07 MY, including 3.000 tonnes of wheat and rye, 600.000 tonnes of barley and 500.000 tonnes of maize.
By regulations No 185 from February 13, 2007, the Government of Ukraine gave additional export quotas for grains given to port elevators and/or terminals for storing before January 25, 2007. Additional quota for wheat and meslin (mixture of rye and wheat) totals 228.000 tonnes, for barley - 606.000 tonnes, for maize - 30.000 tonnes.