The President of the Ukrainian Grain Association (UGA), Mykola Gorbachov reported that the UGA works closely with the Verkhovna Rada of Ukraine and the Government, assures all market participants that the authorities will not impose any limitations on the exports of Ukrainian agricultural products, in terms of the current coronavirus pandemic, declared the press-service of the UGA, on March 26.
To date, there is no threat that Ukraine will remain without food products. Winter crops demonstrated the excellent condition, all agricultural producers already started the spring planting campaign for the harvest-2020, so there are no reasons to ban the exports. The UGA negotiated with the Parliament and the Government, and assures that there will be no threats of imposition of any limitations on the exports of agricultural products, M.Gorbachov said.
Also, the UGA noted that any ban on the exports of grains and oilseeds from Ukraine would have the irreparable catastrophic consequences for the country’s economy and budget.
Every year, the agricultural exports provides nearly 40% of all foreign exchange earnings to the country’s budget. Last year, grain exports alone brought nearly 9.6 bln USD to the Ukrainian economy. To date, the agricultural exports became almost the single source of hard currency in the country, in terms of the falling demand for all other raw commodities that Ukraine exports. The possible export ban would take away the reporting revenues and entail the colossal destructive “tsunami” for the whole economy of the country, the press-service stressed.
Also, the UGA added that to date the Ukrainian economy is facing the deficit of financial and credit resources, due to the economic and financial turbulence on the markets, so the funds from the exports are almost the single tool and source of funds for the agricultural sector to successfully realize the planting campaign.
The possible export ban would lower the necessary finances, and agrarians would not be able to realize the successful planting campaign, which would lead to the food crisis not only in the country, but also around the world. Stopping of the supply of foreign currency revenues from grain exports would lead to the financial panic on the market, as well as the financial and banking crisis, which consequences nobody can forecast for the country and society, the UGA concluded.
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