Ukraine has initiated the creation of the world's grain reserve under the auspices of the United Nations, said Mykola Prysyazhnyuk, the minister of agrarian policy and food for Ukraine.

Ukraine would have the responsibility of forming the reserve of 10 million to 12 million tonnes of grain, preserve it and make grain interventions on the market following respective decisions by the United Nations, reported BSIMagazine.com.

A world grain reserve presumably would be used to regulate world prices through market interventions in times of low grain supply. The world grain reserve also would guarantee food security of the global population.

Ukraine expects to harvest more than 40 million tonnes of grain in 2011. In early August the crop was 36% larger than the amount of crop harvested by August of 2010. It is believed Ukraine's annual grain production is about 33 million to 35 million tonnes per year.