Ukrainian grain import licensing mechanism not working so far - Kiev

MOSCOW. Nov 2 (Interfax) - Three companies tried using the mechanism for licensing exports of four Ukrainian crops (wheat, rapeseed, sunflower seed and corn) banned by Poland, Hungary, Slovakia, Bulgaria and Romania since the moment of the mechanism presentation by the European Commission, but their applications have been declined, Ukrainian media quoted Agrarian Policy and Food Minister Nikolai Solsky as saying at a press lunch in Kiev.

Three companies submitted packages of documents to the Ukrainian government, yet the applications were declined by other states, Solsky said.

The ministry recommended that Ukrainian agrarian businesses abstain from the submission of documents for exports of such products to neighboring European countries until the latter signal the readiness to buy Ukrainian agrarian products, he said.

He thinks that Bulgaria, which chose not to impose a unilateral ban on imports of Ukrainian agrarian products, could be the first to send such a message.

Sunflower seeds could be the first crop Bulgaria might be ready to import from Ukraine. Solsky said. He explained his forecast with a compromise reached between Bulgarian farmers and processing companies to open the market to Ukrainian sunflower seeds from December 1. The Bulgarian government believes that until then local sunflower oil manufacturers could buy domestic produce and would require additional 1.5 million tonnes of raw materials afterwards.

Last season's drought in Bulgaria affected the yield of sunflower seeds, which averages 1.5 tonnes per hectare across the country and is almost twice smaller than the sunflower yield in Ukraine, Solsky said.

"Ukraine has a surplus of 5 million tonnes [of sunflower seeds in this year's season]. We have about 17 million tonnes of sunflower seeds, 4 million tonnes of rapeseeds, and about 5 million tonnes of soybeans. These are oilseeds refined by our oil extraction plants. [...] We can process a million [tonnes of seeds] per month, or 12 million per year. The plants can process both sunflower seeds and rapeseeds," Solsky said. Sunflower seed exports will not leave Ukrainian plants without raw materials, he said.

Ukroliyaprom head Stepan Kapshuk said earlier that Bulgaria has 16 oil extraction plants, which significantly increased production in last year's season and plan to boost sunflower oil exports thanks to the sunflower seeds imported from Ukraine.

According to an adjusted forecast of the Agrarian Policy and Food Ministry, Ukraine may harvest 79.1 million tonnes of grains and oilseeds in 2023, including 21.7 million tonnes of wheat, 5.7 million tonnes of barley and 28.5 million tonnes of corn. The overall production of oilseeds will reach 21.6 million tonnes, including 13 million tonnes of sunflower seeds, 4 million tonnes of rapeseeds, and 4.6 million tonnes of soybeans. Sugar beet production is expected to amount to 13.7 million tonnes.