the FINANCIAL -- On August 30, the People's Deputies of Ukraine – Peter Simonenko, the leader of the faction the Communist Party of Ukraine , and Alexander Tkachenko, the faction colleague, and the head of the Committee of economic policy issues, introduced the law project #7061 for consideration by the Verkhovna Rada of Ukraine “On altering the Law of Ukraine “On grains and grain market in Ukraine ” (regarding the complete satisfying of the State grain demands)”.

According to the explanatory note, during the recent 10 years, the average annual grain production in Ukraine totaled 36 mln tonnes. Without regard to the domestic requirements, Ukraine exports 15-17 mln tonnes of grains annually, or 40-45% of the domestic production. In 2008-2009 MY, Ukraine exported 25 mln tonnes of grains annually.

In the current year, the country expects for grain shortage at the level of 6 mln tonnes as opposed to the last year results, which does not allow to satisfy the regional milling grains and seed material needs and the State reserve. At the same time, grain traders try to fasten grain exports, and since July 1, they have exported nearly 2 mln tonnes. According to the fact, there is the necessity to impose grain export quotas.

"In particular, according to the law project, the Cabinet of Ministers of Ukraine will get the right to set grains export moratorium in order to satisfy the population of Ukraine with pollution-free food, and first of all, food products of animal origin and other needs," Agri Market reported.

According to the explanatory note, just only after the satisfying of all grain needs throughout the territory of Ukraine , the country will impose the quotas for grain selling on the foreign markets.

Previously, the Government of Ukraine considered the possibility of quotas imposition for wheat and barley exports from September 1 till the end of the year, at the level of 2.5 mln tonnes, however, the Government abandoned from imposition of such limitations. At the same time, grain traders blame the authorities that they factually blocked grain exports by setting non-tariff limitations.

according to the Ministry of Agrarian Policy, during the first 2 month of the new MY (from July 1), grain exports from Ukraine totaled 2 mln tonnes, at the same time during the same period of two previous MYs, the country exported nearly 3.7 mln tonnes. Nearly 1.3 mln tonnes of grains are stocked in the ports waiting for exports, 0.26 mln tonnes are at the vessels.

According to the Government forecast, the country will harvest nearly 40 mln tonnes in 2010, as opposed to 46 mln tonnes in 2009. Grain exports from Ukraine during the current MY is estimated at the level of 15 mln tonnes.

The Agricultural Department of the USA (USDA) decreased the forecast of grain production in Ukraine in 2010 by 6.2 mln tonnes – to the level of 38.75 mln tonnes, and the export forecast – by 4.2 mln tonnes to the level of 15 mln tonnes.

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