You're reading: Ukraine’s government to oblige grain traders to finance grain production

Odesa, April 1 (Interfax-Ukraine) – The Ukrainian government plans to oblige grain traders to finance grain production, Agrarian Policy and Food Minister Mykola Prysiazhniuk said at a press conference in Odesa on March 31.

He said that this practice could be applied during this autumn sowing campaign. The following financing scheme could be used: grain traders pay in advance for 50% of the future harvest, then they pay for 30% of the harvest and pay the rest of the sum when the crops are harvested.

"This practice was used in the country before 1917, and it is used today in many countries," the official said.

Prysiazhniuk said that on one hand, the scheme would allow improving the financial state of farmers and on the other hand reducing risks for grain traders, as in this case the state guarantees free trade with grain.