Ukraine, one of the world's top grain exporters, on Wednesday delayed a widely expected decision to introduce grain export quotas that would more than halve exports after severe weather ravaged its harvest.
It plans to limit wheat exports to 1.5 mln tonnes and barley exports to 1 mln tonnes in September-December.
"(The quotas issue) has been delayed until the next meeting)," Deputy Agriculture Minister Serhiy Melnik told reporters after a weekly government meeting.
He added the government needed more data on grain volumes in ports and en route to export terminals.
Ukraine's grain harvests have been hit by severe frosts in the winter and a scorching summer. Neighbouring Russia has banned grain exports after a drought which sent global wheat prices to two year highs earlier in August and triggered inflation concerns in both nations.
Russia's partners in the recently created customs union, Belarus and Kazakhstan, have decided not to follow Russia in banning grain exports, a spokesman for the customs union's executive commission said.
Russian weather forecasters on Wednesday said mass planting of winter wheat for harvesting next year was unlikely to start before September 10 because of its drought, which could hamper efforts to compensate for grain lost in this year's harvest.
They added heat was leaving central Russia and rains were expected. Rains have already started in northwest Russia and are moving eastwards and southwards, welcome relief after the worst drought in over 100 years in parts of Russia.
BREAD SUPPLY
Earlier on Wednesday Ukraine's Economy Ministry said grain export quotas were intended to ensure the nation of 46 mln people had enough bread after its damaged harvest.
"The main task of the resolution is to ensure food safety by imposing licences and export quotas for some agriculture commodities for the period until December 31", it said.
Ukraine needs to guard against inflation under a deal with the IMF which last month agreed to lend the cash-strapped country $15 bln within the next 30 months.
Under the same deal, it has raised gas prices for households by 50% this month to reduce budget deficit, making potential wheat and bread price hikes a very sensitive issue.
Ukraine's central bank said on Wednesday it expected consumer prices to rise by up to 1% month-on-month in August after four months of deflation, due to the gas price hikes.
