Ukraine: will the exports of milling wheat be halted?
It is necessary to temporarily stop the exports of Ukrainian wheat of milling characteristics, until approval of the supply and demand balances of the grain, informed the open letter of the association "Flour millers of Ukraine” on August 14, addressed to Petro Poroshenko, President of Ukraine.
According to the document, in terms of the second largest wheat harvest volumes in the history of Ukraine, the stocks of milling quality wheat total 3.3-4.5 mln tonnes only, with the index of domestic consumption at 5 mln tonnes.
In particular, in order to increase the supply of milling quality wheat on the Ukrainian market, the association offers to realize the audit of the existing grain stocks in the country, and determine the available volumes of milling wheat.
In addition, the Ministry of Agrarian Policy shall conclude the memorandum with grain exporters on temporarily stoppage of the exports of milling wheat, and develop and approve the supply and demand balances of the grain in conjunction with the Ministry of Economic Development. In turn, the State Agricultural Inspection of Ukraine should determine the qualitative indices of wheat for exports, not only by international standards, but also by the DSTU parameters, to determine the gluten content and quality.
Also, it is required to provide additional funding of the Agrarian Fund to increase the stocks of milling wheat in the public intervention fund.
If the Government fails to accept the reporting measures as soon as possible, in 2-3 months Ukraine may face a situation of the second half of 2003/04 MY, when the country had to import milling wheat at the prices higher than the ones on the domestic market, declared the document.
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