27 Jun 2022 15:49

Cancellation of Ukrainian wheat export licensing to raise purchase prices for new harvest - GrainTrade

MOSCOW. June 27 (Interfax) - The licensing of wheat exports from Ukraine, introduced on March 6, has put additional strain on purchase prices for wheat inside Ukraine, while the cancellation of this state regulation measure will help revitalize exports and stabilize prices for this exchange traded commodity, experts of the Ukrainian electronic grain exchange GrainTrade said following a statement made on Sunday by Ukrainian First Deputy Minister of Agrarian Policy Taras Vysotsky, who said that the licensing of Ukrainian wheat exports will be cancelled in July.

"Against the background of the port blockade, grain purchase prices in Ukraine fell sharply, but the introduction of wheat export licenses further increased the pressure on prices, which fell to 5,500-6,500 hryvnia per tonne with delivery to the mill... Farmers have to vacate warehouses on the eve of the new harvest, so they are stepping up sales of wheat, which increases the pressure on prices. Therefore, the revocation of licenses will revive exports and stabilize wheat prices," the Ukrainian media quoted the GrainTrade exchange as saying on its website on Monday.

The licensing procedure complicates wheat bran exports for processing enterprises, which have to spend extra funds on wheat bran storage and disposal, a circumstance which leads to lower prices for wheat in Ukraine, it said.

As reported, Vysotsky said at a meeting with representatives of the European Business Association last week that in July Ukraine plans to cancel wheat export licensing, adding that active cooperation is underway with Baltic and Polish partners to create alternative routes for exporting Ukrainian agricultural products.

The Ministry of Agrarian Policy is also working to continue abolishing quotas and duties for the duration of Ukraine's EU bid and on bringing Ukrainian laws in line with European legislation.

According to Vysotsky, the queues of vehicles importing ordinary cargoes and perishable goods will soon start to be separated at two crossings - Krakovets and Yahodyn - on the border with Poland.