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Supply of grain increased on the domestic market of Ukraine during the harvesting period. In order not to allow an artificial drop of prices, the Agrarian Fund continues to purchase grain from farmers. In addition, before harvesting of the new yield, grain carry over stocks have been actively exported abroad. So, there are no grounds for the fall of prices for grain crops, agricultural policy and food minister Mykola Prysiazhniuk stressed, the Ministry's press service reported.
“This year, one of the largest grain yields is expected both in the world and Ukraine, which will determine the price level. For the government it is important that agricultural producers received an adequate price for grain over a period of its highest demand. Therefore, the Agrarian Fund is actively working in order not to allow oversupply of the domestic market and artificial lowering of prices. The state operator helps removing grain carry over stocks. It is profitable for agricultural producers to work with it, since this establishment pays the market price for grain,” the official noted, Ukrinform informed.
He said that the Agrarian Fund purchased over one million tons of grain according to forward contracts to the intervention fund. Thanks to this, grain carry over stocks of the previous yield were removed from the internal market
“In order to unload grain carry over stocks by the beginning of 2013-2014 marketing year, the state stimulated its export. The sale of grain crops abroad was increased at least by 1 million tons. This enabled to sell grain carry over stocks. And with the beginning of harvesting, in turn, it will promote export of grain of the new yield,” the minister summed up.