The Ukrainian Agricultural Policy and Food Ministry has submitted for approval by the Economic Development and Trade Ministry a bill of amendments to the law on the customs tariff, which should cancel grain export duties.

"The state is not satisfied with the volume of grain exports in recent years. We have already submitted the document to the Economic Development and Trade Ministry, and talks are currently being held. I think that the bill will be agreed in the near future," Deputy Head of the Agricultural Policy and Food Ministry's Department for Agricultural Markets Development Anatoliy Rozgon said.

Director General of the AAA Consulting Agency Serhiy Nalyvka said that the government was obliged to cancel the duties. "The agricultural complex is the main sector that generates revenue for the country, and the government needs to adjust the balance of trade. The actions of the state can be explained by this," the expert said.

He said that the total export capacity in Ukrainian ports helped export three million tons of grain per month. If the cancelation of grain export duties is approved more quickly, then Ukraine will be able to export 24 million tons of grain in the current marketing year.

As reported, since grain export duties came into force on July 1, exporters have started losing their positions on foreign markets. Grain traders said that they could not compete with companies from Russia, because their grain is at least USD 30 per ton cheaper than Ukrainian.

As a result, grain exports fell by five times in July 2011, to 300,000 tons, compared to 1.5 million tons in June 2011.

The duties on wheat have currently been set at 9% of the contract price (but not less than EUR 17 per ton), corn at 12% (not less than EUR 20 per ton), and barley at 14% (not less than EUR 23 per ton).

UKRINFORM