Ukraine will consider limiting flour wheat exports in the first half of 2022, with officials expected to make a decision on the issue in mid-January.
ProAgro Group reports that informed sources told Reuters.
Government officials are concerned that strong exports will raise domestic prices for high-quality baking wheat, making the basic product even more expensive with domestic inflation close to the 2018 highs.
“At a recent meeting at the agriculture ministry, officials indicated that restrictions were possible because export rates were too high,” one source said.
Demand for Ukrainian wheat remains active because its main competitor, Russia, imposes a duty on exports of its wheat and thus also tries to control domestic pressure on prices.
To date, Ukraine has exported 15.6 million tons of wheat since the beginning of 2021/22 MY, which is 27% more compared to the same period last year. According to analysts and traders, the country can supply about 10 million tons more – up to 4 million tons of food wheat and 6 million tons of feed wheat – without affecting its own needs.
