Economy ministry plans to restrict export of Ukrainian corn to 29.3 mln tonnes, UGA opposes this decision
24.04.2020 21:15 "Agro Perspectiva" (Kyiv) —
The Ministry for Development of Economy, Trade and Agriculture of Ukraine has proposed that the ceiling for export of corn in the 2019/2020 agricultural year (July-June) at the level of 29.3 million tonnes is set in a supplement to the memorandum of understanding with the grain market players. «The Ukrainian Grain Association (UGA) does not see the prerequisites for setting the ceiling for export volume of corn for the 2019/2020 agri-year and signing the corresponding supplement to the memorandum between the Ministry for Development of Economy, Trade and Agriculture and business associations on coordinating positions on the grain market for the 2019/2020 agri-year,» the UGA said in an appeal posted on its website. The association is convinced that there are no prerequisites for a shortage of corn in the domestic market, therefore, setting the ceiling for export volume of this crop is impractical. Last year, Ukraine received a record corn crop of 35.2 million tonnes, and this year, the corn crop can reach a new record. ’Today, corn exports amounted to about 26 million tonnes and export rates are declining, which indicates the absence of special interest of exporters in corn. In addition, the market situation is such that the price of Ukrainian corn is almost $25–30 more per tonne than the price of its competitors from Argentina and the United States. Therefore, the UGA expects a further decline in the rate of export of corn in the near future. Therefore, the UGA does not see the preconditions for talking about a shortage of corn in the domestic market," the UGA said. On the contrary, the association believes that Ukraine needs to have time to sell our leftovers while international prices are at «a fairly decent level,» since next year’s crop prices are much lower and storing corn is much more difficult and expensive than other crops. From the beginning of 2019/2020 agri-year as of April 24, 2020, Ukraine exported 49.51 million tonnes of grain and legumes, which is 8.26 million tonnes more than on the same date of the previous agri-year.According to the information and analytical portal of the agro-industrial complex of Ukraine, to date, the country has exported 18.69 million tonnes of wheat, 25.52 million tonnes of corn and 4.63 million tonnes of barley.«Èíòåðôàêñ-Óêðàèíà»
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