Ukraine Expects to Import Sunseed

KYIV - Mar 7/01 - STAT -- The Ukraine may need to import sunflower seed and/or sunoil during the second quarter of 2001 even though it harvested a record 3.3 million ton crop and imposes stiff duties on raw seed exports.

Rumors of the developing shortage has driven up local prices and forced some sunflower crushing facilities to curtail operations. While acknowledging local prices have risen, skeptics wonder if the crushing plant closures have more to do with the price of raw material than availability.

The crushing industry disagrees. Speaking to Roman Olearchyk, a Kyiv Post reporter, Ludmyla Zinchenko, president of Ukrolia, the crushing plants' industry association, said, "Four crushing plants have already halted production due to shortages. Most of the rest will probably shut down in April."

Crushers claim the Ukraine's 23% export duty on raw seed is not stopping merchandise from leaving the country, partly because of a loophole which allows seed to leave duty free if sunoil is brought back into the Ukraine.

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