Double quality certification for grain to be cancelled

The State Service for Regulatory Policy and Development of Business has proposed cancelling double quality certification for grain and grain products. This initiative is stated in the draft resolution of the Cabinet "On certain issues regarding transportation of grain and grain products", the Information-Analytical Bulletin of the cabinet of Ministers of Ukraine informs.

This will significantly simplify the work of agrarians and help the country achieve its goals on the global food market. The plans are to help the country make top three world leaders of grain production.

Agrarian experts note that, this year, the country will be ranked second among the world grain exporters, the State Food and Grain Corporation of Ukraine (SFGCU) was awarded an official status of the UN Food Program partner, thus ensuring the access to new grain distribution channels. Cooperation with the UN provided state-owned companies with access to all grain supply tenders– particularly, for wheat, corn and sorghum.

According to State Service of Ukraine for Regulatory Policy and Development of Business, exporters currently are obliged to obtain the grain quality certificate twice: during grain loading and during customs clearance of export operations (grain reloading). Consequently, according to the Service, there is a significant increase in cost of transport/handling operations and export services, which results in purchase price pressure on domestic market. Mykola Prisyazhnyuk, Ukraine's Minister of Agrarian Policy and Food, said that cancelation of dual quality certification for grain and its products will help reduce the cost of grain logistics and accelerate the export shipments of grain. Experts say due to certificates farmers have to spend 3 billion UAH annually for various inspections. Today, cost of issuing a quality certificate is 162 UAH per vehicle (road transport) and 195 UAH per rail car (rail transport).

The draft resolution developed by the Service propose to issue one quality certificate for grain and grain products per batch of goods, despite the total number of vehicles, where it is loaded.

In case of grain shipment by multiple vehicles, it is supported by copy of quality certificate obtained during the first loading.