Ukraine Can Cancel the Export Duties on Grains in Early September

On August 29, Nikolai Prysiazhnyuk, Minister of Agrarian Policy and Food of Ukraine, declared that the Ministry expects for cancellation of the customs duties of grain exports by the Verkhovna Rada in early September 2011.

According to N.Prysiazhnyuk, Nikolai Azarov, Prime Minister of Ukraine, entrusted to the First Deputy Prime Minister, the Ministry of Agrarian Policy and the Ministry of Finance to study the situation and submit proposals for activation of grain exports.

According to the Minister, it is required to make changes to the Tax and Customs Codes. And to date the Ministry is preparing the corresponding offer.

As a reminder, since July 1 and till January 1, 2012, the Government imposed the export duties for the following grain varieties: wheat - 9% of the contract price, but not lower 17 EUR/t; barley – 14%, but not lower 23 EUR/t; maize – 12%, but not lower 20 EUR/t.

Since the beginning of the current marketing year, wheat exports from Ukraine shows low trading rates, which is linked with the effect of export duties.

According to the latest forecasts of the Ministry of Agrarian Policy of Ukraine, the general grain harvest in the country in 2011 will exceed the level of 50 mln tonnes, while in 2010 Ukraine produced 39.3 mln tonnes.

In the current, grain export trading is expected at the level of 25 mln tonnes against 12 mln tonnes last marketing year.