Ministry of Agrarian Policy is taking all measures to prevent price decline on grain
Due to the high supply of grain on the domestic market, the government is taking measures to prevent a decline in its prices. For that purpose before the new marketing year grain crops remains were actively exported abroad. And the State Food-Grain Corporation together with the Agrarian Fund massively purchase the new grain in forward and spot contracts. And already in August the price for grain will increase. This was announced today at a press conference by the Minister of Agrarian Policy and Food, Mykola Prysyazhnyuk.
«Almost every year at the beginning of the harvest there is a decline in grain prices. They begin to grow around August when there are more active shipments of crop. Currently, the price situation in the domestic market is gradually stabilizing and the government is making every effort to avoid sinking in grain prices, »- said the Minister. During the last week there was an increase in prices for wheat and barley in some regions. According to Mykola Prysyazhnyuk, in order to keep stable prices for grain crop remains were maximally decreased before the new marketing period. In addition, two state operators — the Agrarian Fund and the State Food-Grain Corporation are actively working in the market.
«The Agrarian Fund purchased 1034 thousand tons of wheat harvested in 2013 to the state intervention fund. That is, the Agrarian Fund „took away“ a part of the grain supply of the domestic market before the harvesting period. Furthermore, it gave credits to manufacturers which enabled them to fully and promptly carry out spring field works. And the State Food-Grain Corporation buys corn in forward contracts and early crops — in spot contracts , »- informed the Minister.
The next step of the Ministry of Agrarian Policy, according to Mykola Prysyazhnyuk, will be reconsideration of the costs of logistics services. «Today, one of the most pressing issues is prudent pricing in the chain of grain movement from producer to ports. The cost of the wheat logistics chain in Ukraine today is 546 UAH per ton, that is a third of the export price. Thus, the cost of handling in Ukraine is 3 times higher than that of our nearest competitor countries. Therefore, the Ministry is considering to reduce the cost of logistics costs — to review the rates of transshipment in ports, to introduce tariff breaks on rail transportation, to reduce the cost of regulatory bodies services, etc. », - concluded the Minister.