Ukraine's agriculture ministry asking grain traders to strengthen control over wheat exports

The Agricultural Policy and Food Ministry of Ukraine has asked grain traders to strengthen controls over the volumes of wheat exports, as the limit of 5.5 million tonnes agreed with the ministry has been reached.

"Taking into account the fact that the memo [of understanding signed by the ministry and grain exporters] sets the limit on wheat exports at 5.5 million tonnes, and its term runs until December 1, 2012, we're asking for strengthened controls over the observation of the memo's requirements," reads an official letter of the ministry sent on November 30, 2012, a copy of which has been sent to Interfax-Ukraine.

The letter is addressed to the American Chamber of Commerce, the Ukrainian Grain Association (UGA), the Ukrainian Agrarian Confederation, the European Business Association, the Association of Farmers and Private Landowners and the Agrarian Union of Ukraine.

In its letter, the ministry said that as of November 30, 2012, the actual volumes of wheat exports came to almost 5.43 million tonnes, and 94,000 tonnes has been loaded on ships.

As reported, grain exports from Ukraine since the start of the agricultural year (July 2012 – June 2013) and as of November 30, 2012 came to 11.76 million tonnes, which is 71.3% up on the previous year.

Earlier, the ministry and grain traders agreed on free exports of 5.5 million tonnes of wheat from July to December 2012. The ministry said it planned to discuss the further fate of wheat exports with market players when the said volume is reached.

First Deputy Agricultural Policy and Food Minister Ivan Bisiuk said that there are reserves available for further wheat exports.

The Agricultural Policy and Food Ministry expects that the country will export 21-22 million tonnes of grain during the current season.