OREANDA-NEWS. October 07, 2008. The Cabinet of Ministers of Ukraine won't set quotas for the export of chemical production and won't open a market for cheaper Russian mineral fertilizers.

The decision was taken in response to chemical industry workers planning to decrease the cost of ammonium nitrate and carbamide for farmers by 15% and 30% respectively, compared to prices registered in September, the press service of the Agriculture Ministry told.

In early September, the ministry criticized chemical plants for doubling prices for mineral fertilizers in January-September. The ministry then asked the government to restrict the profitability of mineral fertilizer production to 10%, with an average 20-30% on the market.

Prime Minister Yulia Tymoshenko said later that the Cabinet was planning to decrease prices for mineral fertilizers by cancelling antidumping duties on the import of ammonium nitrate from Russia and by establishing quotas for the export of mineral fertilizers during a sowing campaign. Chemical plants and farms then started agreeing limit prices for mineral fertilizers.

According to Deputy Chairman of the Association of Farmers and Landowners Vasyl Yaroshovets, farmers and chemical industry workers, during a council, involving representatives from the Industry Ministry, the Agriculture Ministry and the Economy Ministry, agreed to set limit prices for ammonium nitrate and carbamide on October 1.

The price for ammonium nitrate should be no more than UAH 2,250 per ton, and for carbamide no more than UAH 3,000 per ton that is 15% and 30% respectively down the prices set on September 1 (USD 1 / UAH 4.87). Chemical plants expressed their readiness to sell mineral fertilizers at the abovementioned prices.