OREANDA-NEWS. January 21, 2013. In Ukraine sufficient cereal stocks has been formed in order to avoid arbitrary bread. Capacity of enterprises of milling industry is over 16 million tons of grain processing per year; it exceeds the actual needs of the domestic market. In turn, the Agrarian Fund will continue intervention of flour to baking business. These and other measures will ensure stable price situation on the grain market in Ukraine.

In order to prevent price fluctuations in the grain market Ministry of Agrarian Policy and Food of Ukraine ensured processing wheat and rye grain from the state intervention fund for intervention flour to baking business.

Flour from grain of intervention fund is sold for stable prices. And by the end of the marketing year (July 1st 2013) prices for flour from grain intervention fund will remain stable. This will partially offset the increase in other components of the cost of bread and ensure stable price situation in the domestic market.

Moreover, thanks to measures taken by the Government in 2012 and 2013, unlike previous years, grinding batches of grain of intervention fund are formed considering placing bakeries that can significantly reduce the cost of transporting flour.

It should also be noted that the Government gave instructions to relevant central and local executive bodies to implement additional measures to control stable situation in the grain market, in particular, changes in the payments system of business baking industry for gas and electricity, reductions by retailers settlement terms with baking enterprises, strengthening enforcement of legislation on protection of economic competition.