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| Ukraine PM says no grain export limits in 2010/11 |
| Kyjev, 10.09.2010 |
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| World wheat prices surged to two-year highs in early August as drought devastated Russia's harvest and the country announced a sudden grain export ban.
Ukraine's government will not introduce any limits on grain exports because the ex-Soviet republic has enough grain to cover domestic needs and export demands, Prime Minister Mykola Azarov said on Friday.
"We do not plan any kind of limits on exports," Azarov told regional officials in the southern Crimea region.
"Despite the drought, we have harvested enough grain to cover all export and domestic needs," he said.
World wheat prices surged to two-year highs in early August as drought devastated Russia's harvest and the country announced a sudden grain export ban.
After the searing drought in July and August the Ukrainian grain crop is likely to fall to 40 million tonnes from 46 million in 2009. But it is still well above domestic needs of 26 million tonnes.
After Russia introduced a grain export ban in August, the Ukrainian government proposed limiting exports of wheat and barley to 2.5 million tonnes between September and December, though it then said that a final decision would be made only in October.
Deputy Prime Minister Viktor Slauta this week said Ukraine was able to export up to 16 million tonnes of grain this season against 21.5 million in 2009/10.
In spite of what the government says, the Ukrainian customs service is carrying out de facto curbs on exports by holding up shipments in Black Sea and Azov Sea ports.
The customs service says its checks are directed at stopping an outflow of illegal grain. Its activities cut the grain export volume to about 2.0 million tonnes in the first two months of this season compared to 4.0 million in the same 2009/10 period.
But some traders, speaking privately, challenge this and say the customs service is acting on instructions from people in government. The grain traders' union UZA said this week that customs officials had blocked 24 vessels with 379,647 tonnes of grain, mostly wheat, for exports without offering any explanation.
Reuters
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