September 1 2005, 15:12 APK-Inform

"Khlib Ukrainy" bought 7.5 pc of its target amount of grain to be purchased

As of August 31 state-run joint-stock company "Khlib Ukrainy" (Bread of Ukraine) bought a total of 152,900 tonnes of grain, which is 7.6 percent of 2 million tonnes that government had commissioned this state-subordinated structure to buy, a spokesman for Agrarian Policy Ministry said to APK-Inform on Thursday.

According to Economy Ministry, Khlib Ukrainy is buying grains at an average price of 526 hryvnias per tonne ($104/t), but it has so far paid for just 38 percent of the supplied grain (58,200 tonnes).

Managerial officials of Khlib Ukrainy were declaring that the company planned to export over 3 million tonnes of the 2005 crop grain. The idea, however, was strongly criticised by local observes and experts, who claimed it impracticable because of lack of relevant experience and qualified staff at Khlib Ukrainy. On July 29 Cabinet of Ministers granted a number of preferences to Khlib Ukrainy and its affiliates to help them export the declared amount of grain. These were related to export VAT refund and reduction of grain transportation fees. However, on August 31, after numerous protests of private grain market participants and Ukrainian Grain Association, these preferences were cancelled.