Ukraine will cancel the licensing of wheat exports, which will increase purchase prices for the new harvest

At a meeting with representatives of the European Business Association, First Deputy Minister of Agrarian Policy of Ukraine T. Vysotsky said that Ukraine plans to cancel the licensing of wheat exports in July, and recalled the active cooperation with Baltic and Polish partners to create alternative export routes for Ukrainian agricultural products. The Ministry is working to continue the abolition of quotas and duties for the duration of Ukraine’s EU bid, as well as to improve legislation.

Also in the near future at two checkpoints on the border with Poland – Krakowets and Jagodyn it is planned to separate the queues for the import of goods with perishable goods.

Against the background of port blockades, grain purchase prices in Ukraine fell sharply, but the introduction of wheat export licenses further increased the pressure on prices, which fell to 5500-6500 UAH / t with delivery to the mill. Processors lower prices because they cannot export wheat bran and have to spend extra money on their storage or disposal. Farmers have to vacate warehouses on the eve of the new harvest, so they are stepping up sales of wheat, which increases the pressure on prices. Therefore, the revocation of licenses will revive exports and stabilize wheat prices.

According to the State Customs Service, in 2021/22 MY Ukraine as of June 24 exported 48.13 million tons of cereals and legumes, in particular in the period 1-24 June – 1.032 million tons, namely:

• wheat – 18.687 million tons (in June – 89 thousand tons),
• barley – 5.739 million tons (23 thousand tons),
• rye – 161.5 thousand tons (not exported in June),
• corn – 23.232 million tons (915 thousand tons),
• flour – 70.5 thousand tons (69.1 thousand tons), including wheat – 1.7 thousand tons (in June 1.6 thousand tons).