The FINANCIAL — The customs duties on grain exports from Ukraine will stay active until the end of 2011, as the Government rejected the proposal of the Ministry of Agrarian Policy to give up the duties, stated Anatoly Rozgon, Deputy Director of the market department of the Ministry of Agrarian Policy, on September 5.
According to him, the Government will not cancel the duties. If the authorities cancel the duties, it will be necessary to provide additional consultations with the International Monetary Fund, to look for new sources of revenue for the budget.
As a reminder, previously Nikolai Prysiazhnyuk, Minister of Agrarian Policy and Food of Ukraine, proposed to the Cabinet of Ministers to cancel the customs duties, varying within the ranges of 9-14% of customs cost of exported grain varieties, but the Ministry of Finance became against the project.
According to the Ministry of Agrarian Policy, reduction of the purchasing prices for grains on the domestic market, decline in sales of agricultural enterprises, which caused low levels of grain exports from the country, became the result of imposition of the customs duties on grains. In July Ukraine exported nearly 370 thsd tonnes of grains only, which is 80% less compared to June. The low volume of exports was also observed in August 2011: during first 27 days of the month Ukraine supplied nearly 900 thsd tonnes of grains on foreign markets compared to 1.3 mln tonnes in August 2010.
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