Thursday, December 2, 2010

Grain exports from Ukraine is still blocked

Grain exports from Ukraine is still blocked, because the Ministry of Economy does not provide the corresponding licenses to grain trading companies, declared Leonid Kozachenko, the President of Ukrainian Agrarian Confederation, on December 2.
L.Kozachenko reminded that the specially founded committee distributed 2.182 mln tonnes of quotas for grain exports from Ukraine between trading companies on November 12. At the same time, the planned meeting of the special committee on distribution of quotas for agricultural commodities exports on December 2, where the committee planned to continue allocating the quotas, was postponed on December 8, 2010, for some unknown reasons.
According to data of L.Kozachenko, such situation led to the fact that to date nearly 183 thsd tonnes of grains for the further export trading are blocked in the ports of Ukraine.
The President of Ukrainian Agrarian Confederation marked that from the beginning of the current marketing year, Ukraine exported nearly 5 mln tonnes of grains, as opposed to 11.5 mln tonnes in the same period of the previous MY. At the same time, the expert considers that in the current marketing year Ukraine is able to supply 13-14 mln tonnes of grains on the world market without serious consequences.
L.Kozachenko has doubts that Ukraine will manage to export the remaining 8 mln tonnes of grains till the end of the current marketing year, if the Government releases export trading with grains.
According to him, the issue with maize exports is especially important nowadays. L.Kozachenko marked that in the current year Ukraine produced nearly 12 mln tonnes of maize as opposed to 10 mln tonnes in the previous year, and exported 640 thsd tonnes of the grain only from the beginning of the current MY, as opposed to 2 mln tonnes in the same period of 2009/10 MY.
L.Kozachenko also informed that due to the absence of maize export trading, the prices essentially fell down, and in March 2011 the prices will continue decreasing due to the influence of the world tendencies. As a result, the President of Ukrainian Agrarian Confederation offered to immediately cancel maize export quotas. According to him, Nikholay Prysiazhnyuk, the Minister of Agrarian Policy, supports the initiative.
As a reminder, yesterday agrarian nongovernmental organizations applied to Viktor Yanukovych, the President of Ukraine, to order to the Government to cancel maize export quotas immediately.
From October 19 to December 31, 2010, Ukraine imposed quotas for exports of 2.7 mln tonnes of grains, including 0.5 mln tonnes of wheat, 0.2 mln tonnes of barley, 2 mln tonnes of maize, 1 thsd tonnes of rye and buckwheat each.

Egypt aiming at Ukrainian wheat

Egypt’s Premier Ahmed Nazif considers Ukraine capable of meeting Egyptian wheat needs.

“We have agreed on the need to establish direct contacts, as Ukraine can meet the needs of the Egyptian wheat market,” said Nazif at the 6th meeting of the Ukrainian-Egyptian commission for economic and scientific and technological cooperation, which took place in Egypt.

According to him, the issue of Ukrainian wheat deliveries to Egypt was discussed during his meeting with Premier Mykola Azarov.

As reported before, Azarov paid an official visit to Egypt on November 24-25. Previously, Egypt repeatedly declared its intention to expand the range of purchases of Ukrainian agricultural commodities.

Please remember that Egyptian Agriculture and Land Reclamation Minister Amin Abaza promised in December 2008 to facilitate the registration of the state-owned joint-stock company Khlib Ukrainy at Egypt’s food administration for participation in international tenders within the framework of the government program of grain supply to the country. Egypt refused Ukrainian grain in November 2010.

We previously reported that Azarov had promised to study the possibility of granting state scholarships to Egyptian students for their education in Ukraine.

Ukraine: agrarians to ask to change the Tax Codex and cancel maize export quotas

Ukrainian Agrarian Confederation, the Agrarian Union of Ukraine, the Association of farmers and private landowners of Ukraine, Ukrainian Grain Association, the Union of Dairy enterprises of Ukraine appealed to Viktor Yanukovych, the President of Ukraine, regarding the urgent necessity to change the Tax Codex clauses concerning the interests of agrarians.
According to the announcement of the press-service of Ukrainian Agrarian Confederation, it is about the VAT taxation of grains and technical crops operations, and also about dairy and cattle-breeding support system in Ukraine.
Representatives of the non-governmental organizations of the Ukrainian agricultural complex note that cancellation of the VAT taxation of oilseeds and grains trade operations, provided by the new Tax Codex, will cause losses at the level of 10-12 bln UAH annually.
The profile organizations appeal to the President to impose a veto on the Tax Codex, in order to take into account the interests of agrarians during its updating. Also the agrarians offered to leave the current order of the VAT taxation of oilseeds and grains trade operations and its compensation during export trading, in order to provide the measures, the agrarians offered to exclude the art.19 of transitional positions from the Codex text.
Besides, the agrarians appealed to the President to order to the Government to cancel maize export quotas immediately.

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