ZAGREB, June 13 (Hina) - Farms will be offering between 400 and 450 tonnes of wheat for sale this year, and the selling price will be determined exclusively through the direct agreement between producers and buyers, Agriculture
Minister Bozidar Pankretic told today's news conference, stressing the state bought off 43 percent of last year's wheat. "This year not one kuna will be set aside from the budget for the purchase of wheat, nor will there be any political decisions regarding the price," he said, adding this is the policy of stabilising the wheat market in Croatia. The Agriculture and Forestry Ministry will this year take over the role of coordinator among all subjects in the sale, the producers, buyers and banks covering the purchase. The overall wheat production this year is estimated at about a million tonnes. Present estimates indicate that after securing home needs, the market surplus of wheat coul
ZAGREB, June 13 (Hina) - Farms will be offering between 400 and 450
tonnes of wheat for sale this year, and the selling price will be
determined exclusively through the direct agreement between
producers and buyers, Agriculture Minister Bozidar Pankretic told
today's news conference, stressing the state bought off 43 percent
of last year's wheat.
"This year not one kuna will be set aside from the budget for the
purchase of wheat, nor will there be any political decisions
regarding the price," he said, adding this is the policy of
stabilising the wheat market in Croatia.
The Agriculture and Forestry Ministry will this year take over the
role of coordinator among all subjects in the sale, the producers,
buyers and banks covering the purchase.
The overall wheat production this year is estimated at about a
million tonnes. Present estimates indicate that after securing
home needs, the market surplus of wheat could amount to 200,000 to
250,000 tonnes.
A large number of companies could this year take part in buying off
this year's wheat -- silos, mills, and information has been coming
in from the ground that the purchase amounts have already been
agreed on.
However, as the price must be agreed on by the producers and buyers,
ministry officials say the price could be set between what farmers
are requesting (one to 1.2 kuna) and last year's price companies
might offer.
A novelty in the market setting of the price is that banks will be
covering the purchase with 400 million kuna insurance for loans to
buyers.
"The state has a clear interest to stabilise the domestic wheat
market, and the price of flour tied to it, for which it is necessary
to export market surplus," Pankretic said.
In order to stimulate the export of wheat, the state will secure
certain financial resources to participate in a part of export
costs (manipulative costs), which would create preconditions for
the purchase of farmers' wheat at the price which would satisfy the
farmers as well, Pankretic holds.
There will be a public tender for the export of wheat, the offers
will be public and the best one will be chosen.
(hina) lml sb