Because of draught affecting five Ukrainian steppe oblasts and heavy rains in the western oblasts, losses in grain production in 1998 may reach 2-2.5 million tons, said Ukraine's agriculture minister Borys Supikhanov, speaking to journalists July 1. The minister said that in 1998 the average grain yield per hectare was 25.5 centners, vs. 26.9 centners in 1997. Total grain production was 35.4 million tons in 1997. Fodder production, on the contrary, increased, said the minister. Farmers put up two million more tons of hay in June, compared to the same period of 1997. The Agriculture Minister also stated that the recent presidential decree imposing higher excise taxes on petroleum products will have a negligible effect on grain prices. Grain production is quite sufficiently profitable, at 50-70%, which makes it possible not to raise grain prices, he added.






