August 11, 2008

 

Poland wants EU to restore grain tariffs to limit competition

   
  

Poland would be asking the EU to re-impose import tariffs on cereals to limit inflows of cheap supplies ahead of an expected bumper harvest this year, the agriculture minister told Reuters on Friday (August 8, 2008).

 

However the European Commission had said it had no intention of doing so.

 

The limits were suspended for the 2007/08 marketing year in June 2008, to ensure sufficient supplies and to cool rising prices.

 

Since Europe would be having a much better harvest this year, there would be no need for grains to be imported into the region, Agriculture Minister Marek Sawicki said.

 

The tariff suspension is the latest in a string of disagreements between Poland and the group's executive body over farm policy.

 

The Polish government is also working on a bill to scrap a ban on GM planting, which the EU is still resisting.

 

EU countries are forecast to produce 301 million tonnes of cereals in 2008 thanks to favourable weather conditions, 43 million tonnes more than in 2007.

 

However, Poland expects its basic grain output to fall by 7-9 percent from 2007. The average yield for grains is forecast at 2.83-2.89 tonnes per hectare, down from 3.16 tonnes in 2007.

 

Despite the lower output, forecasts of grain prices in Poland have continued their slide and Sawicki would like to restore import tariffs to keep out the competition from cheaper grains.

 

Data by the ministry shows the average price for a tonne of milling wheat dropped in Poland by almost 5 percent month-on-month in July.

 

Growing strength in the local currency, the zloty, were hurting the trade balance by making the export of grains unprofitable for many, while making it worthwhile for importers to bring in more grains, he said.

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