OREANDA-NEWS. September 15, 2008. Over July-August and the first decade of the current marketing year Ukraine has exported 4.9 MN tons of grain. Including wheat – 2.3 MN tons “which is significantly higher against the whole previous marketing year” Minister of Agrarian Policy Yuriy Melnyk stressed during meeting of the Government into the issues of functioning of grain market.

Despite this, domestic market still possesses a significant supply of grain which significantly influences its purchasing prices. According to the declared data, its volume now exceeds 9.5 MN tons. “Out of this amount of fodder grain by 6.3 MN tons more, barley – by 3.3 MN tons. That’s why the topmost problem is prices for fodder grain,” Yuriy Melnyk stressed.

The Government has applied all possible mechanisms to stabilize the grain market: financed the Agrarian fund, introduced mechanisms of encouragement of agricultural producers. Though, according to Agrarian Policy Minister Yuriy Melnyk, the situation calls for additional measures. Notably, Ministry of Agrarian Policy suggests flour mills, baking, stock-raising and other potential grain consumers to purchase the necessary yearly amount.

Commercial banks are envisaged to credit the purchase of grain while the state would ensure secure returning of loan charges at the account of state budget funds. On the estimates of the Agrarian Policy Ministry the need in funds for the annual purchase of grain by enterprises which apply it in their production totals 2.8 bn UAH. “Through a mechanism of reduction of credits this sum would enable to significantly relieve the strain on the fodder grain market,” Yuriy Melnyk stressed.

Furthermore, Agrarian Policy Minister Yuriy Melnyk, during today’s meeting, has raised an issue on additional budget financing of Agrarian fund in order to buy more grain and to become a serious player at the grain market.