International grain market to open in Ukraine - Minister of Agrarian Policy
2010-11-15 17:32:54
An international grain exchange may start work in Ukraine next harvest year. Ukraine's Minister of Agrarian Policy Mykola Prysiazhniuk said this during his meeting with Ukrainian journalists after a working visit to Brussels, according to the UKRINFORM correspondent in Belgium.
"We are negotiating, and I think that by the next harvest year we will have the exchange. Grain traders have supported this. It will be a branch of either the Chicago or the European stock exchange. The grain trader will go to the exchange, where the mechanisms of exchange insurance, protection and free trade will work," Prysiazhniuk emphasized.
He said that a delegation of the Chicago exchange three weeks ago completed its work in Ukraine and should give the Ukrainian government its proposals after November 25. The European market is expected to provide its proposals for the creation of a grain exchange in Ukraine before December 1.
Prysiazhniuk noted that in Ukraine, stock exchange legislation is "at an appropriate level," another thing is that it is not observed. It is just required to adopt a law on agricultural insurance, which has already passed its first reading.
The Minister said the grain market will be a weighty leverage of trade helping avoid accusations by grain traders that the Government of Ukraine makes attempts to regulate trading markets. Under these conditions the state will be obliged to contract the 26 million tons of grain needed to ensure food security.
Responding to questions from UKRINFORM, the Minister refuted the possibility that increased activity in the export of grain may affect the domestic grain consumption in this country. Under all conditions Ukraine stably produces at least 40 million tons of grain, its export potential being at least 15 million tons.
"With any predictions, we cannot consume domestically the amount of grain, which is now produced or will be produced in the future. We have a consumption balance of 26-28 million tons at present. Even increasing livestock and the production of meat, we will be able to use an additional of 2-3 million tons of coarse grains. Thus, there will be sure an excess for export," the Minister said.