July 29 2004, 16:40 UNIAN

A parliamentary claims government's grain export forecast is unreal

A member of parliamentary budget committee and the political group of Ukrainian People's Party Yevhen Zhovtiak has stated that government has knowingly inflated the size of the forecast grain exports from Ukraine.

According to him, in such a way governments creates the illusion as through there were a considerable external demand for Ukrainian grain and, consequently, the offer of grain for local needs can be limited.

According to Mr. Zhovtiak, such a policy may prevent a slump of grain prices, which is traditional for autumn. In order word, it is a usual PR action of the government, aimed at creating agitation among the grain buyers and preventing the price drop.

It is unlikely, however, that any of the grain market participants would believe in such declarations of government, says the people's deputy. He also expressed hope that the government will restrain from accomplishing its grain export forecast by way of administrative methods.

According to his opinion, it will be hardly possible to prevent the seasonal fall of grain prices in autumn by way of populist declarations. A more efficient way would be purchase of the grain excesses into the state reserve.

"It seems, however, that the government is not sure of the budget's capability to absorb the excessive amount of grain, and therefore they are trying to prevent the autumn price fall by other methods", says the parliamentary.

As it has been earlier reported, Ukraine's Vice Prime Minister for Agriculture Ivan Kyrylenko stated that Ukraine would be able to export 7 to 9 million tonnes of grains in this season. According to government's forecast, grain crop in Ukraine in the 2004/05 MY is expected at the level of 32 to 35 million tonnes.