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Government promotes exports of Ukrainian grain
22.11.2013 13:08 "Agro Perspectiva" (Kyiv) —
The Cabinet of Ministers has amended Decree dated June 9, 2011 «On approval of list of paid administrative services to be provided by the State Veterinary and Phytosanitary Service, agencies and institutions which are part of their jurisdiction and amount of payment for their provision.» According to the changes, a phytosanitary certificate, a phytosanitary certificate for re-export and a quarantine certificate will cost 50% less before June 30, 2014.These documents will be issued to agricultural traders for export of each lot of grain and products of its processing, ForUm reports referring to the Information-Analytical Bulletin of the Ukrainian Cabinet.
Experts from the Ministry of Agrarian Policy and Food say the changes aim to resolve a comprehensive problem of simplifying logistics and reducing logistics costs at the grain market.
According to agricultural experts the grain market is rather in a tough situation. This year Ukraine has the largest — over 60 million tons — grain yield in its history.
However, a surplus of offer on the international markets due to good grain yield in many countries caused a significant price drop.
Agricultural market experts say that the government has set an ambitious target to increase grain production to at least 80 million tons by 2020. Generally they believe it is a realistic plan, even though it requires upgrade of farm machinery, developing of network of grain elevators and logistics infrastructure to ensure exports of agricultural products.
According to experts, given the conditions, in terms of the long term interests, the government should support profitability of grain production in the entire technological chain at a certain level.
In the years of low prices for grain, the Cabinet should support local farmers, keeping them interested in increasing grain production, experts emphasize. This is the only thing that will ensure multi-billion investments in the agricultural sector to strike a 80 million ton limit for grain production.
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