The aggregate 1999 grain harvest is estimated by FAO at 27 million tonnes, some 2 million tonnes less than last years' poor 29 million tonnes. May. Output of wheat is estimated by FAO at 15 million tonnes, about 2 million tonnes less than last year, and that of coarse grains at 11.3 million tonnes compared to 11.4 million tonnes in the preceding year. Many regions placed controls to the free movement of grain and efforts by the government and regional authorities to recover debts owed by farms have resulted in understatement in actual yields. The validity of this year's harvest estimates may also have been affected by persistent rumours of hryvnia devaluation after the elections and well- publicized moves by the government to regulate grain exports. To ensure the availability of an adequate quantity of wheat, the government has passed a law waiving the import duty on up to 1.5 million tonnes of cereals provided they are imported before 1 September 2000.
Imports are to be financed from regional resources.
The presence of hidden stocks of cereals and financial considerations are likely to keep imports well below this level. Despite the tight domestic situation, exports have continued, fuelled by rumours that the government intends to introduce a 30 percent export duty on cereals.