Photo: Wikipedia

Government decision allowing export controls could prevent wheat price spike

The government's recent decision to allow the imposition of controls on wheat exports under certain circumstances could prevent prices from soaring, daily Magyar Nemzet said.

The paper noted that supplies were currently smooth, adding that the measure could ensure that domestic demand is met “even in the most difficult situations”.

Szazadveg analyst Gabor Regos told the paper that under the government’s measure, the minister of agriculture is empowered to halt exports when necessary rather than imposing a full ban. He said the country had a large surplus of wheat, barley, and maize, and “a full ban would cause serious losses of revenue to the sector”. Exports will be allowed unless the security of supplies is compromised or prices soar, he added.

There is worry on international markets concerning a prospective halt in wheat exports by Ukraine and Russia. Regos said the impact of the war on Ukraine’s agricultural production could not be forecast yet.

Zsofia Potsa, general secretary of the association of grain producers and traders, said the government measure had come by surprise, but added that domestic supplies were not at risk. “Hungary produces more wheat than it consumes each year, and supplies for the domestic market have been ensured even in the worst years,” she said.

Leave a Reply