Ukraine does not plan to limit wheat exports

Deputy Minister of Economy Taras Kachka said that the government is not yet considering restrictions on wheat exports.

Only if the pace of exports turns out to be too high, the authorities can restrict exports, writes Refinitiv Agriculture.

Ukraine, which expects a record grain harvest this year, attracted strong global demand in the first half of the season, said Taras Kachka

“By mid-November, the Black Sea country has shipped 52% of the annual export volume agreed last month with the grain sector in the amount of 25.3 million tons for the 2021/22 season (July-June)”, the Deputy Minister said at the Global Grain conference in Geneva.

It is noted that Ukraine traditionally exports wheat mainly in the first half of the season, before the rate of its exports plummets when exporters address other countries for grain imports.

“The shipment schedule is changing due to demand, but we are not worried about this”, said Taras Kachka.

When the export quota is nearly reached, the government can start considering export restrictions. But Ukraine would prefer not to restrict exports, unlike Russia, which introduced an export duty, said Kachka.

According to the expert, the government may allow additional exports from 100 thousand to 200 thousand tons and use state reserves before considering the introduction of export restrictions.

“But if, for example, 90% of the quota is exported by March, then we will need to have daily discussions with traders. We want to be open to the highest possible level of export, but, of course, not at the expense of domestic consumption”,Taras Kachka highlighted.