Ukrainian sunflower seed processors to decrease oil prices after the required laws come into force

Large-scale Ukrainian companies-processors of sunflower seed are ready to realize reduction of prices for sunflower oil, supplied on the domestic market, despite the unprofitableness of such operations compared to the export market, which in its turn provides rather essential influence at price position of the raw material for processing on the domestic market, according to the recent announcement of the Association “Ukroliyaprom".

The announcement informs that oilseed processors worked out the project of the corresponding mechanism for providing the domestic market with sufficient volumes of sunflower oil at acceptable price level, and are ready to realize the project.

The main companies are ready to guarantee monthly supplying of 20 thsd tonnes of packaged sunflower oil on the domestic market. The retail price will not exceed the level of 13 UAH/l.

However despite readiness of the industry for such actions, to date oilseed processors do not have the juridical right to realize such coordinated measures, which the Government requires.

Thus, the major oilseed processors sent the corresponding request to the Antimonopoly committee of Ukraine for securing of the legal environment for such coordinated actions.

At the same time, the processors again underlined that any possible export limitations for sunflower oil are groundless. In the current year Ukraine received the record sunflower harvest. Sunflower oil production exceeds the domestic consumption level by 6 times, and any possible export limitations will cause stoppage of enterprises and colossal losses, marked market participants.

In case of maize quotas cancellation, Ukraine to face the grain deficit in May 2011

In the case of cancellation of maize export quotas to date, in May 2011 Ukraine will possibly face the deficit of the grain, declared Sergey Trigubenko, Deputy Minister of Agrarian Policy and Food of Ukraine.

According to S.Trigubenko, the Verkhovna Rada of Ukraine has the reporting draft law on cancellation of maize quotas, but the Ministry is against, due to rather small volumes of maize for exports in the country.

The project of the Decree of the Cabinet of Ministers “On imposition of alternations to supplement of the Decree of the Cabinet of Minister of Ukraine #938 dd. October 4, 2010” contains the offer to cancel maize from the list of agricultural products, which export trading is subject to licensing.

Ukraine: state regulation caused problems with flour on the domestic market

Recent problems with flour selling on the domestic market of Ukraine were caused by price regulation activity of the State, declared Leonid Kozachenko, president of Ukrainian Agrarian Confederation, on February 17.

According to him, the Government requires that flour millers sell the product at below-cost price.

According to the expert data, as of February 1, 2011, wheat carry-over stocks in Ukraine totaled 5.8 mln tonnes with the monthly consumption level of 0.6 mln tonnes.

President of Ukrainian Agrarian Confederation summed that in such way the country does not have any background for flour deficit.

Previously, Vadim Kopylov, First Deputy Minister of Economic Development and Trade, informed that Ukraine has artificial agiotage connected with flour selling.