March 6 2003, 10:36 Interfax-Ukraine

Ukraine will overcome problems with bread grain - Prime Minister

Situation in the bread baking industry of Ukraine will not be much different from that of the previous years, Prime Minister of Ukraine Victor Yanukovych was cited by Interfax-Ukraina news agency as saying commenting on the opinion about probable problems with bread in Ukraine this year.

"There will be some difficulties, but we'll overcome them", the Prime Minister assured.

As it has been reported, more than 40 percent of winter crop plantings in Ukraine was lost to weather this winter. According to estimates, gross crop of grain in 2003 may decrease 20 percent compared to the previous year - to 30-32 million tonnes. Since February 1 prices for flour have risen almost 20 percent in virtually all regions of Ukraine and now constitute some 1,200 hryvnias per tonne of top grade flour (5.33 hryvnias = $1). If the rates of price growth remain like this, increase of prices for bread will be indispensable, analysts said.

Bread prices is an extremely important issue in Ukrainian society, where a considerable part of population's incomes goes on food, particularly - on grain-based products.