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Cabinet Of Ministers Considers Stock Of 2.1 Million Tons Of Bread-Grains On Market Before New Harvest As Adequate
18.04.2003 "Agro Perspectiva" (Kyiv) - The Cabinet of Ministers says its considers that the stock of bread-grains on the local market that are adequate for meeting the needs for baking of bread based on stable prices before the appearance on the market of the grain harvest for this year (before 1 August) consist of 2.1 million tons given that demands are for 1.9 million tons of grains. The press service of the Cabinet of Ministers disclosed this to Ukrainian News. “Demand for bread-grains beginning 1 April to 1 August consists of 1.9 million tons, practically there are 2.1 million tons, which as a whole is sufficient for the domestic demands of the state,” it is mentioned in the press service’s statement.
In order for stabilization of the situation with grains in the regions, the Cabinet of Ministers decided to sell 200,000 tons of grains from the state reserve and the State Committee for Material Reserves presently sells wheat and flour to the regions, which are experiencing shortage of bread-grains. At the same time, experts of the agricultural market consider in contrary to that of the Cabinet of Ministers that the grain stocks on the domestic market are not sufficient for meeting the needs of the market until the new harvest. Based on the estimates of market participants, in view of the market needs for bread-wheat in the amount of 2 million tons, supply of grains on the market at the beginning of April consists of 1.7 million tons, including 1.4 million tons of bread-wheat. As Ukrainian News has reported, in connection with a rise in prices for grains and flour in January to February by 20%, bread-baking enterprises announced their intentions to hike prices for bread. In early March, President Leonid Kuchma gave an instruction to General Prosecutor Sviatoslav Piskun to look into the situation on the grain market, the causes of grain shortage in several regions at a time of its abundant production, as well as cases of monopolization on this market, artificial holding up of grain sale, and also driving up of demand and prices for grain and products from its reprocessing. At the present time, the average price for a ton of wheat of the 3rd grade quality consists of UAH 670/ton, whereas the priced for flour of the superior sort consists of UAH 1,250/ton. The demand of the domestic market in grains for production of bread and bakery goods consists of 6.3-6.5 million tons. (Ukrainian News)
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