UAC director Serhiy Stoyanov said grain export duties caused the fall in shipments because they made Ukrainian grain less competitive on the global market, which has seen Russian grain flood back in after a near year-long export ban following severe drought in 2010.

The local union of traders and producers said in a statement the volume had included about 1.0 million tons of barley, 700,000 of wheat and 100,000 of other cereals.

Kiev-based ProAgro consultancy said in a report that Ukrainian wheat had been supplied mostly to Spain (258,000 tons), Italy (78,100 tons), Portugal (36,500 tons) and India (33,000 tons).

Ukrainian barley went mostly to Saudi Arabia — 583,100 tons.

The Farm Ministry, however, said the volume of exports had reached 2.1 million tons in July-August. The ministry declined to give more details. 

In July, Ukraine replaced grain export quotas with export duties, which will be in force until January 1, 2012.

Export duty on wheat is 9 percent but no less than 17 euros ($24.30) per ton.

Export duty on barley is 14 percent and no less than 23 euros per ton.

Export duty on maize is 12 percent and no less than 20 euros.

Stoyanov said cheap Russian grain dominated the market and its neighbor had sold abroad about 5.5 million tons of cereals in July-August.

Ukraine’s Farm Ministry last week proposed canceling grain export duties in a bid to increase export shipments but a senior Farm Ministry official said the proposal had been refused.

Ukraine, which forecast a bumper 2011 grain harvest of at least 51 million tons, plans to export 20-25 million tons of grain in 2011/12, against 12.7 million in 2010/11, but current exports are too low to meet the forecast.