Grain and Oilseeds

29/ 03/ 2017

On 10 March 2017, the Government of Ukraine adopted Instruction No166-p that cancelled the Order of Minagropolicy No.661 dated 13 October 2008 prohibiting blending of different grain classes.

To date Ukrainian grain norms and standards are not in line with the international grain trading practices.

Almost all international contracts are based on grain quality parameters, while the Ukrainian grain classification system limits the flexibility of pricing policy. This increases the cost and reduces the competitiveness of domestic products in international markets.

Two years ago, the EBA Grain & Oilseed Committee took the initiative to allow forming export batches of different grain classes and repeatedly stressed on the necessity to reconsider the outdated rules and procedures for grain trading.

Under the Committee’s expectations, cancelation of the ban to form export batches of different grain classes will substantially improve efficiency of the Ukrainian grain market operators and will have a huge positive impact on competitiveness of the Ukrainian exporters on the international grain markets.

This positive step will allow optimizing the use grain storage and transshipment facilities by about 15%.

Legal background

The issue of quantitate and qualitative accounting of grain (in particular, the demand to store grain by classes in different silos) is governed by the Instruction for accounting and preparation of operations with grain and its processing products at grain receiving and processing enterprises approved by the Order of the Mistry of Agrarian Policy and Food of Ukraine No.661 dated 13 October 2008 (Order No.661).

On 10 March 2017 the Cabinet of Ministers of Ukraine adopted Instruction “On cancelation of certain orders of ministries and other central executive authorities” No.166-p (Instruction No.166-p). Point 1 of the Annex to Errand No.166-p stipulates cancelation of Order No.661 as irrelevant and establishing regulatory barriers.. under Point 3 of Instruction No.166-p, the document shall become enacted in two months after its publication, i.e. from 21 May 2017.

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