You're reading: Azarov: Government to find optimal decision on export duties for agricultural products

The Ukrainian government will continue discussing with farmers the necessity for grain, oil-bearing crop and sunflower oil export duties, and will reach an optimal decision on the issue, according to Ukrainian Premier Mykola Azarov.

"The government is ready to find a compromise, but giving ultimatums would be in vain," he said, opening a cabinet meeting on Wednesday in Kyiv.

Azarov added that an decision made will take into account three objectives: not to lose revenues to the national budget, to retain the profitability of agricultural production, and to guarantee the food security of the country, taking into consideration the fact that this autumn’s drought means the country will have to create large food stocks.

"I’m sure that we’ll find an optimal solution," he said, calling on farmers not to hold protest rallies.

He ordered the Ukrainian Agrarian Policy and Food Ministry to draw up a long-term food strategy for Ukraine that would take into account the trend for growth in food prices in the world, annual variations in the quality of harvests, and changes in product demand and supply.

As reported, Ukraine introduced grain export duties for the period of July 1, 2011 through January 1, 2012: 9% on the export of wheat, but not less than EUR 17 per tonne of wheat, 12% on the export of maize, but not less than EUR 20 per tonne of maize, and 14% on the export of barley, but not less than EUR 23 per tonne.

The Agrarian Policy and Food Ministry earlier initiated the cancelation of duties, although the government did support the proposal.

In addition, the Ministry of Economic Development and Trade of Ukraine has proposed to introduce export duties on sunflower oil (10%, but not less than EUR 84 per tonne), soybeans (12%, but not less than EUR 33 per tonne), and rapeseed (9%, but not less than EUR 15 per tonne).

The ministry proposes the introduction of new duties from January 1, 2012, including unlimited export duties on sunflower oil and industrial crops.

Farmers are calling for the urgent cancellation of duties, saying that production of the above-mentioned crops is unprofitable and they have to stop production. Earlier, several farming associations held a protest rally near the cabinet offices.