September 20 2001, 11:08 APK-Inform

The Parliament approved in the first reading the bill "On grain and grain market"

On September 20 the Verkhovna Rada approved in the first reading the bill "On grain and grain market of Ukraine", introduced by a group of parliamentarians.

The bill sets measures of state regulation of domestic grain market, grain export and import.

The Document proposes to implement so-called "pledge purchases of grain" - purchases of grain from producers by state agents at minimal guaranteeing prices with a possibility of further selling of this grain by producers during the period of pledge purchases.

It is offered to implement intervention purchases of grain for market regulation.

According to the bill, state joint-stock company "Khlib Ukrainy" was defined as state agent ensuring pledge purchases of grain, export and import of grain products as well as undertaking of intervention operations.

Obligatory terms of selling pledged grain by producers is repayment to grain storing enterprises expenses for grain storing and insuring fees during the period of actual storing.

The bill also implements state monopoly on supplies of grain planting seeds. It is presupposed that State Seed Insuring Fund will do supplies of seeds to agricultural producers on requests of local administrations.

Grain and beans crop, according to the bill, is a subject of mandatory insuring.

It was also proposed to implement new kind of securities -warehouse warrant on grain.

Head of Verkhovna Rada Committee on Questions of Agrarian Politics and Land Relations E. Vaschyuk is sure that approval of this bill will help, in particular, increase of grain production in upcoming years, stabilization of prices on grain and grain products.

As bill's authors say, because the government didn't interfere into grain export and didn't regulate grain market Ukraine yearly lost about 2 billion hryvnyas. Implementation of this law during its first year requires 250 million hryvnyas for undertaking of interventions and 600 million hryvnyas for pledge purchases of grain. Undertaking of these operations will give a possibility to receive from pledge purchases of grain net profit of 176 million hryvnyas that is along with VAT and tax on enterprises' profits should increase the budget for 398 million hryvnyas.