IMPORTANT PROJECT OF THE LAW!!!

Ukraine: only agricultural producers and state operator to export agricultural commodities?

On February 2, 2011, the people's deputy of the Verkhovna Rada of Ukraine originated project of the law* on realization of food commodities exports of the state price regulation exclusively by agricultural commodity producers of the reporting products in the volumes of own production, and the State agent for providing of exports of the state price regulation objects.

According to authors of the project of the law, acceptance of the law will allow to protect interests of the domestic producers of agricultural commodities, covered by the state price regulation, and interests of the Government in the process of foundation of the civilized agrarian market of the country.

In order to realize the aims, the authors plan to impose new export rules for the agricultural commodities, which are the objects of the state price regulation.

* Project of the law (№8053) on imposition of changes to the Law of Ukraine “On the Governmental support of agriculture of Ukraine” (concerning peculiarities of realizing exports of the objects of the state price regulation).

Fitting of grain monopoly in Ukraine?

On February 2, 2011, the Parliament registered new project of the law, unprecedented by the legislative innovation for all the time of independence of Ukraine, noted the Ukrainian Agrarian Confederation. The project on realization of food commodities exports of the state price regulation exclusively by agricultural commodity producers of the reporting products in the volumes of own production, and the State agent for providing of exports of the state price regulation objects will completely monopolize the market in the case of complete acceptance. Meanwhile, export trading forms 50% of grains demand, and 80% of sunflower oil demand.

Market participants – representatives of trading companies, producers, experts, estimated and faced disbelief in the bill adoption, despite the fact it is the result of work of the people's deputies of the parliamentary majority. It is due to its obvious non-compliance with the Constitution of Ukraine, antimonopoly legislative, the Commercial Codex and to the range of other Laws of Ukraine.

The major of agricultural producers of grains first of all, will depend on the State agent, which provides exports of the objects of the Government price regulation, its trade plans, financial condition, market behavior, and agrarians will loose the chance to choose the buyer. Only grain processors with annual demand at the level of 8 mln tonnes, which are not able to support prices on the market by their measured purchasing activity, will be the “competitor” of the agent.