The Food and Agriculture Organization of the United Nations (FAO) refused to the proposal of the Ukrainian authorities to place the world reserve of milling grains at the territory of Ukraine, due to doubts about the practicability of establishing the world reserve of milling grains in Ukraine, announced D.Hallam, Director of the Trade and Market Division, FAO.

According to him, it is hard to use the global reserve stocks to stabilize prices. It is potentially very expensive and carries a risk of speculative attacks, if supplies are not sufficient. The mechanism of the world reserve stocks of the past is examined as having a limited impact on reducing price volatility, D.Hallam said, according to

But he expressed support for Ukraine's interest in increasing grain supplies on the world market, and reducing the price volatility.

However, in his opinion, the UN sees the solution of problems of food shortages in the need to establish national and regional small-scale strategic reserves of grains.

As a reminder, on August 3, 2011, Nikholai Prysiazhnyuk, Minister of Agrarian Policy and Food of Ukraine, said that Ukraine proposed to the United Nations to host the world reserve of milling grains at the territory of the country.

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