Ukraine: agrarian block of the Government was not successful in making quotas receiving procedure clear

Ukrainian agricultural producers share own view with the position of Nikholay Azarov, the Prime-Minister of Ukraine, about the necessity of grain export quotas cancellation, which was announced by the Head of the Government at the end of December 2010. The quotas imposition played the role in stabilization of food domestic market, however to date the special export regime is the essential brake for agrarian development of the country. The opinion was stated by Eugene Leng, the General Director of Ukrzernoprom Agro Ltd., stated the press-service of the enterprise.

Grain free exports absence causes the essential losses for Ukrainian agrarians. The general sum totals 10 bln UAH.

In the conditions of the absence of funds for the rural area development in the state budget, it is the hard impact on the peasants interests. Besides, the plant growing commodities demand faced the essential decrease. It causes agricultural enterprises financial rates worsening, commodities overstocking. Vagueness with the possibility to realize fruits of own labor without limitations caused the fact that agrarians essentially decreased winter crops field. The quotas keeping will cause more essential decrease of wheat, barley, maize spring sowing areas. The bank sector of Ukraine, in the conditions of financial rates decrease at the agricultural producers and unpredictability of the export policy for the next season, turns aside of the agrarian industry. It will mean very violent funds deficit increase, necessary for fields work realization, stated E.Leng.

According to his opinion, the agrarian block of the Government did not make quotas receiving procedure clear and controlled by the professional industry associations. Ukrainian mass media announces about the essential corruption component, laid into the procedure. Additional export quotas allocation for intergovernmental agreements implementation is the direct frustration of the antimonopoly legislation, and causes the disparity of market participants and comes in conflict with the principles, which Ukraine should have followed, when received the status of the country with market economics.

To date, agrarians do not even discuss the reasonability of the quotas regime imposition with grain production volumes at the level of 40 mln tonnes, underlined E.Leng. Of course, it causes the serious doubts. But it is about the fact that if the country continues the current policy – it is the discrimination of all the peasantry, which may cause not only the serious circumstances for economics of Ukraine, which condition is not still the best after the economic crisis, but also effects at grain production decrease in the current season. It is based on the support of agricultural workers of the position of Nikholay Azarov, the Prime-Minister of Ukraine, who stated about the necessity of the export quotas cancellation at the end of December.