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Cabinet to perform 2007 grains forward purchases at fixed minimal prices
16.05.2007 09:00 "Agro Perspectiva" (Kyiv) —
Cabinet is going to buy 2007 crop grains up to forward schemes at minimal prices established for corresponding marketing period, reported Vice-Premier Viktor Slauta press-service.
As to press-service, Cabinet will determine forward purchases volume proportionally to necessary general volume of State Food Reserve (to be formed by Agrarian Fund) for corresponding marketing period.
Cabinet draft Decree on launching of State forward grains purchases stipulates procedure of these purchases. As to procedure, forward purchases mean buying grains from agricultural producers within established marketing period at fixed prices on condition of advanced payment equaling to grains 50% full cost on date of forward exchange contract conclusion (contracts are to be concluded for not over 1 marketing period).
As to draft Decree, forward purchases will be performed by Agrarian Fund with budgetary financial means; Fund is to complete purchases not later as 1 month before marketing period ending. Agrarian Fund will conclude contracts with corresponding agricultural producers on Agrarian Exchange (contract form is to be approved by Ministry of Agrarian Policy).
As to analysts, launching of forward grains purchases procedure in Ukraine will make it possible to assure State support to agricultural producers, provide economic risks insurance and promote State Food Reserve forming.
As to Agro Perspective earlier report, Ministry of Agrarian Policy had fixed 2007/08 MY minimal/maximal purchase prices for a number of State price regulation objects:
soft wheat: 1 class — correspondingly UAH900 per MT and UAH978 per MT; 2 class — UAH850 per MT and UAH924 per MT; 3 class — UAH750 per MT and UAH815 per MT; 4 class — UAH700 per MT and UAH761 per MT; 5 class — UAH650 per MT and UAH707 per MT;
hard wheat: 1 class — UAH990 per MT and UAH1,076 per MT; 2 class — UAH930 per MT and UAH1,011 per MT; 3 class — UAH850 per MT and UAH924 per MT; 4 class — UAH760 per MT and UAH826 per MT; 5 class — UAH630 per and UAH685 per MT;
"A" group rye: 1 class — UAH700 per MT and UAH761 per MT; 2 class — UAH650 per MT and UAH707 per MT; 3 class — UAH600 per MT and UAH652 per MT.
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