State Food and Grain Corporation received requests for over 300 thousand tonnes of grain purchase through forward contracts
State Food-Grain Corporation of Ukraine continues the program of forward grain purchases from farmers. The purpose of this program, which started March 1, 2013, is a prepayment resource to farmers for growing crops and the organization of its distribution at competitive market prices.
Currently, the first step of forward purchases is holding. This step provides landowners’ applications, the formation of the required documents, signing forward contracts, agreements and documents of comprehensive insurance of the next harvest. According to the trade and export branch of the State Food-Grain Corporation of Ukraine as of March 18, domestic farmers submitted applications for more than 300,000 tonnes of grain. The most active regions are Kharkiv, Volyn, Dnipropetrovsk, Vinnytsya, Kirovohrad, Sumy, Kyiv and Zhytomyr.
Today the farmers’ interest to forward purchases is high and the attitude to the proposed conditions is positive. During the first two weeks of the program the State Food-Grain Corporation of Ukraine received over 150 applications from farmers that are actively processed. All documents for most of them are ready and forward contracts were concluded. Soon, farmers will receive advance payments under these contracts.
The first phase of the forward program by the State Food-Grain Corporation of Ukraine will be approximately till the end of May 2013.