Traders urge Ukraine government to free feed grain sales

13 Dec, 2006

Ukraine's grain exports should reach 11 million tonnes in 2006/07 and the government must abolish export restrictions for feed wheat, barley and maize, the UZA grain traders' union said on Tuesday.
The government has introduced new grain export quotas totalling 1.103 million tonnes through 2006/07 and analysts have said the measure might trigger a 43 percent fall in sales to 7.5 million from 13.2 million in 2005/06.
"The exports are likely to total 11 million tonnes," UZA director Volodymyr Klymenko said, adding that the country had exported about 5.0 million tonnes of grain so far this season.
Klymenko said Ukraine needed to export large amounts of grain to avoid saturation of the domestic market and a fall in prices. But Economy Minister Volodymyr Makukha said the country had to limit exports if it wanted to keep bread prices stable.
"Exports of wheat are unlikely," Makukha told reporters. But he noted the government would review new grain export quotas already set for the 2006/07 season and might increase volumes if reserves permitted.

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