GOVERNMENT BANS IMPORT OF WHEAT AND FLOUR

( Editorial: --> 6231 ) ZAGREB, July 7 (Hina) - The Croatian Government on Tuesday reached a decision banning the import of wheat until further notice. At a closed session the government adopted a proposal from the Agriculture and Economy Ministries by which the import of wheat and all types of flour is banned until further notice, to the effect of stabilising the domestic market, the government's Communications Office said in a statement. Earlier today Economy Minister Nenad Porges held consultations with Premier Zlatko Matesa and Finance Minister Borislav Skegro on intervening with a wheat purchase. The consultations were also attended by Agriculture Minister Zlatko Dominikovic, representatives of the Union of Associations of Farmers of Slavonia and Baranja, the Croatian Cooperative Association and corn-producing counties. After the consultations, Porges said he would suggest that the government purchase an additional 200,000 to 300,000 tonnes of wheat, with instalment repayment up to October 1. Porges recalled that the government decided to purchase 200,000 tonnes of wheat at a guaranteed price in the first stage, with payments within two weeks. For this the government ensured more than US$34 million. The state will be the dominant buyer of the offered quantities of wheat, which should revolve around 400,000 to 450,000 tonnes, said the Economy Minister. Early in June Croatian farmers demanded that the government purchase the whole amount of the offered wheat, not only 200,000 tonnes, and to stop any wheat import. On the contrary they threatened a blockade of roads. The Agriculture Ministry estimates that this year farmers will be offered 550,000 tonnes of wheat. (hina) ha jn /mbr 071857 MET jul 98