News
17.09.2012
Wheat export ban will hit farmers - expert
If the state introduces a moratorium on the export of wheat, its prices may seriously fall down and farmers will sow record small areas in 2012-2013.
This was stated by the chairman of the Union of Agricultural Service Cooperatives, Ivan Tomych, Expert Agro reported.
"This problem will be especially acute for the drought-affected regions. It is difficult to imagine what a farmer in Dnipropetrovsk region, who lost his crop, feels, now even being unable to sell it at a favorable price," the expert said.
He predicts, if the moratorium is a reality, farmers will sow record small areas with wheat in 2012-2013. "I am afraid we could face a situation when wheat will occupy minimum acreage in the past 10 years," Tomych suggests.
At the same time, according to Ukrainian Agrarian Confederation CEO Serhiy Stoyanov, from October 2011, the country has a memorandum, according to which there is a certain limit on exports. Currently it is 4 million tons of wheat, 12.5 million tons of corn and 3 million tons of barley. When 80% of the set amount is exported, traders will be able to get advice on the future of the market. Up to that point it remains to export about 1.4 million tons of wheat more. And this is at least two months of work, the UAC head said.
Therefore, the algorithm of behavior in the grain market has been defined, Stoyanov underscored.
