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The Cabinet of the Ministers of Ukraine is going to purchase 2 mln. MÒ of grain in August - September 2003 for prevention of a collapse of the prices
10.02.2003 "Agro Perspectiva" (Kyiv) - The Cabinet of the Ministers of Ukraine is going to purchase 2 mln.MT of grain of 2003 crop in August - September with the purpose to avoid a collapse of the prices at the market during the period of maximum offer. Vice-premier Ivan Kirilenko has informed to the journalists about it. "The largest problem is the price in August - September. 2 Mln.MT of grain make the weather. If they will be taken away from the market, we shall partially settle the problem ", - has told Ivan Kirilenko. He has added, that first of all the Cabinet of the Ministers is going to work with mortgage purchases of grain. The government considers the circuit of those purchases and the price level now. Ivan Kirilenko has reminded, that the Cabinet of the Ministers is going to establish the mortgage prices for grain at the level of 380-400 UAH/MT for 3rd grade wheat this year, proceeding from the costs of production plus 25 % of profitability. Ivan Kirilenko has indicated that now government searches for financial resources, in particular, the bank credits for maintenance of mortgage purchases. (Agency "Ukrainian news" " As informed agency, now the Cabinet of the Ministers considers possible price levels for grain under the mortgage circuits. In particular, the variant is considered: the cost of production of grain plus 25% of profitability, that, according to the calculations of the experts, will ensure the price at the level of 350-380 UAH/MT for 3rd grade wheat. The Cabinet of the Ministers planned to purchase 3 mln.MT under the mortgage circuits in 2002. However any of the operators, who were determined by regional administrations, has defaulted the plans of purchase of the foodstuffs because of absence of the finance. The mechanism of mortgage purchases of grain was entered by the Decree of the Cabinet of the Ministers dated July 21, 2000 according to the order of the President of Ukraine Leonid Kuchma. The mechanism of mortgage purchases of grain supposes the purchase of the foodstuffs for reimbursement of the costs to the peasants for its production and maintenance of the minimum profit in case of abundant offer at the market.
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