July 12 2002, 12:22 UNIAN

Ukrainian government to prevent dump in grain prices

The Government is working to prevent sharp falls in grain prices in conditions of oversup-ply. This was said by Prime-Minister Anatoliy Kinakh July 11.

According to him, as far as world market is experiencing fierce competition concerning sales of agricultural products, Ukraine has to develop an efficient, up-to-date system of commodity exchanges and to re-fine its policies of promoting its farming products in export markets.

He also said that mechanisms of mortgage prices must "indispensably" be applied in Ukraine, because it was impermissible to let the prices of farm produce, including grain, drop sharply in conditions of high supply and low demand.

According to him, it was also urgent to refine the procedures of commodity interventions. He said that the government "is working towards this issue". In this context he reminded that on the Cabinet's sugges-tion Parliament had adopted the Law of grain market which gave legal foundation to efficient market-like ap-proaches to sales of farming produce.