Vinnytsia, August 2 (Interfax-Ukraine) – The price of new harvest wheat of Hr 1,600 per tonne covers the expenses of farmers and is the optimal price, according to Ukrainian Premier Mykola Azarov.
"Now the situation on the grain market is the following: the price [of Hr 1,600 per tonne] is optimal, as it covers the expenses of farmers," he told journalists on Tuesday during his working visit to Vinnytsia region, where he visited agricultural firm Agro-Etalon LLC.
Azarov did not say what class of wheat he was referring to, although traditionally the basic price is that of third class wheat.
Answering questions, the premier also said the country cannot allow a fall in the price of sugar.
"The price of sugar should not fall. We are to keep it at the present level. The price suits buyers and producers," he said.
Farmers have criticized authorities for the adoption of a law on the introduction of duty on grain exports for the second half of 2011: wheat at 9% or at least EUR 17 per tonne, corn 12%, or at least EUR 20 per tonne, and barley 14%, or at least EUR 23 per tonne.
They said that this has led to a fall in the prices on the market, which means the production cost of the crops is not covered.
Some experts forecast a fall in the prices of sugar due to the expected excess of sugar on the market: according to forecasts of the Ukrainian Agricultural Policy and Food Ministry, sugar production will amount to 2.2 million tonnes, while demand on the domestic market is 1.9-2 million tonnes.
