News
13.04.2011
Ukraine: Government plans to strengthen own role in regulation of the grain market
The Government of Ukraine decided to strengthen own role in regulation of the grain market – through imposition of the export limitations and, increasing of the market share for the State market operator, declared Aleksey Gavrilov, President of the Grain and Feed Trade Association (GAFTA) in Ukraine.
It is very strange to expect for any investments in agricultural production in Ukraine in such situation, according to the President. To date many companies review own plans of business development in the country. He also marked that Ukraine has the right to make measures, which are necessary for supporting of the food security of the country, such as imposition of grain export quotas and licenses. According to him, the limitations were reasonable, especially for wheat exports, because it was the real risk that traders would export the whole grain volumes from the country. But the method of the export quotas imposition is the other case. At the beginning of the season, the State customs service limited grain exports by own forces, and many traders met losses due to demurrage of vessels in the ports and inopportune conclusion of the contracts. That is why, the number of arbitrages in GAFTA essentially increased, underlined A.Gavrilov. The President of GAFTA considers that the export duty is the better mechanism compared to the export quotas, due to more coherent system of work.
