February 14, 2011

Moldovan government delays grain exports

Moldova's grain exports have been temporary suspended till the new harvest of 2011 as the government's decision was made on February 2 on the proposal of the Ministry of Agriculture and Food Industry of Moldova (MoA).

However, the ban does not apply to the exports of seed grain and corn exports.

Minister of MoA, Vasile Bumacov said the decision is caused by the triple increase of grain exports last time. According to him, the adopted decision will allow avoiding exhaustion of domestic grain reserves, inevitable bred price increase, so it is aimed to favor the food security of the state.

The grain need at the domestic market is 145 kmt till the new harvest, and there are stocked only 135 kmt. The difference of 10 kmt were compensated by the importation of 15 kmt of flour.

The grain exports ban will come into effect once it is published in the Monitorul Oficial (official state edition). Until that time, wheat can be exported, according to contracts available, by economic agents having necessary certificates.

Producers and importers are dissatisfied with this fact and said the state should observe the market economy principles, not impeding their activities.

Wheat harvest in Moldova in 2010 increased by 1.5% to 748 kmt, however, only 240 kmt of grain belonged to the food wheat. Moldova's annual needs in food wheat are valued at 340 kmt. Exports went up 2.5-3 times in comparison to the equivalent period of the last year.