OREANDA-NEWS. November 21, 2008. Minister of Agrarian Policy Yurii Melnyk urged producers of grain crops to sell their produce through Agrarian fund at hypothecation prices. He announced during the briefing in the Cabinet of Ministers.

Yurii Melnyk emphasized that price situation on the grain market is supported by presumable purchases of Agrarian fund. According to him, the State Budget has allotted UAH 2 bn 250 mn for this and this sum has been completely used by enterprises.

“Nowadays we have around UAH 400 mn not exhausted money for grain purchases not complicated by orders and executed documents of agricultural enterprises,” the Minister stressed addressing enterprises with proposition to complete activity in hypothecation purchases. At this he imparted that the Agrarian fund is operating through their offices in every region.

At the same time Yurii Melnyk underlined an effectiveness of a mechanism of hypothecation prices which is applied to forage crops and bread-grain in Agrarian fund. “The mechanism is effective, it is convenient for a borrower who receives money under 8.7% annual interest rate and for the state that seeks to back agricultural producer in the most suitable period,” he explained and added that hypothecation price for III class grain bought by Agrarian fund amounts 750 UAH, while maize depending on the class amounts 650-708 per ton.