July 2 2003, 09:43 Interfax-Ukraine

Ukraine's government suggests cancelling import duty for milling grain

Government of Ukraine has suggested Parliament to temporarily cancel the import duty for milling grain to satisfy domestic demand, the First Deputy Prime Minister of Ukraine Mykola Azarov told a joint sitting of representatives of government and parliament, devoted to the situation in the country's agrarian sector on Tuesday.

Ukraine has to permit preferential imports of milling grain temporarily, for several months, without quoting or any other restrictions, Azarov said.

The Prime Minister Victor Yanukovych noted that cancellation of the duty will allow importing to Ukraine about 2 million tonnes of grain this year. He appealed to the deputies with the request to consider and support this proposal of the government, in order to remove tension in the regions.

The current rates of import duty for milling wheat in Ukraine are 80 and 40 euros per tonne (preferential rate). The duties for milling rye are 40 and 20 euros per tonne (preferential rate). These duties do not apply to imports of milling grains from Russia and Kazakhstan.