August 21 2002, 15:30 APK-Inform

Around 70pc of grain in Ukraine is sold under "grey market" schemes

Experts with Ukraine's agrarian ministry think that about 70 percent of grain in the country is sold under "grey market" schemes, which brings to naught any attempts of government to stabilise prices.

Government had charged state market operators, responsible for state grain reserves, and some other state-controlled organisations, to perform during July and August interventional purchases in the amount of 3 million tonnes of grain. Besides, it had recommended regional state administrations to form within the same period regional grain resources in the total amount of 6 million tonnes. As of August 15 state grain market operators purchased 1.76 million tonnes of new crop grain, which is 40 percent of the government target figure. Some 1.3 million tonnes were purchased into regional grain resources.

Yet, vast amount of grain, sold in semi-legal markets, is levelling these measures down.