With Ukraine in the grip of a severe drought, industry analysts recently predicted a slash in grain exports in the country. The country's agricultural ministry said drought had damaged crop spread over around 400,000 hectares of crops and the figure was likely to rise. In view of the drought, the government might also cancel a decision to lift wheat export quotas. The quotas had disrupted shipments and inflicted millions of dollars of losses on trading firms. "Under the World Trade Organization rules, Ukraine can put limits if the situation affects our ability to feed the country," said Serhiy Melnik, Ukraine's deputy agriculture minister.
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