March 13 2003, 10:58 Interfax-Ukraine

Ukraine's gvt will start grain and flour interventions in domestic market

In order to prevent growth of prices for bread, Ukrainian government intends to make interventions of milling grain and flour in the market on the nearest days, press-service of the Cabinet of Ministers has informed.

In particular, State Committee for Management of State Material Reserve (Derzhkomreserv) will hold a competition to sell grain from the state reserve to meet the demand of eight the most severely affected by flour shortage regions.

Representatives of Ukrainian bread-baking industry have earlier applied to government with a request to take measures for stabilisation of prices for grain, the growth of which might entail increase of prices for bread. According to analysts, since February 1 prices for flour have increased almost 20 percent and now reach 1,200 hryvnias per tonne of top grade flour, Interfax-Ukraina new agency informs. If the rates of growth remain like this, an increase of bread prices will be indispensable, analysts said.