THIS YEAR'S WHEAT CROP AT MILLION TONNES

ZAGREB, June 26 (Hina) - This year's wheat crop will amount to about a million tonnes. Farmers will offer between 400,000 and 450,000 tonnes of wheat for sale, and the price will be determined exclusively through the direct agreement between the producers and buyers. After setting aside a sufficient amount for domestic needs, the market surplus could be between 200,000 and 250,000 tonnes, the Croatian Co-operatives Association Management Board concluded today. This year, the buying of the crop will be left to the market, that is, not one kuna will be set aside from the budget to buy wheat, which is a continuation of the policy to stabilise the wheat market in Croatia. Last year the state bought 43 percent of the offered wheat, while this year the Agriculture and Forestry Ministry is taking on the role of coordinator between all subjects in the buy out, that is, the producers, the buyers and banks which will be covering the transactions. A novelty in the process is that the banks will be providing 400 million kuna (about US$47 million) for buyers' loans. There should be no problem with the payments, as the loans will be granted with 12 months maturity and a ten percent annual interest rate. Another novelty is the fact that an increasing number of banks are prepared to cover the wheat sale without the state guarantee. (hina) lml sb