Gov't mulls customs duty free wheat import

The government is looking at ways to stem the rising prices of bread, reports say.

Izvor: B92

Friday, 15.02.2008.

12:37

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The government is looking at ways to stem the rising prices of bread, reports say. The Ministry of Agriculture is thus considering allowing importers to buy some 200,000 tons of wheat from abroad free of customs taxes. Gov't mulls customs duty free wheat import State Secretary Danilo Golubovic said Thursday that this move would contribute to the calming of the wheat market in the country. His ministry will also advise the government to extend its temporary decision to ban corn and wheat exports, adopted last August in the wake of the summer drought. Golubovic says that the ban should apply until the next harvest. The cabinet is likely to debate this as early as next week. The reason for the price hikes in the Serbian market, Golubovic explained, is that the wheat is unevenly distributed in the market, in the possession of a small number of companies and individuals. The customs duty free import will aim to activate the domestic reserves, currently held in storage, expecting even higher prices, he said. Golubovic added these imports will likely not lower the price of wheat, and consequently of bread, rather "keep them contained at a certain level." But he also warned that the "time of cheap food" in Serbia was "over".

Gov't mulls customs duty free wheat import

State Secretary Danilo Golubović said Thursday that this move would contribute to the calming of the wheat market in the country.

His ministry will also advise the government to extend its temporary decision to ban corn and wheat exports, adopted last August in the wake of the summer drought.

Golubović says that the ban should apply until the next harvest.

The cabinet is likely to debate this as early as next week.

The reason for the price hikes in the Serbian market, Golubović explained, is that the wheat is unevenly distributed in the market, in the possession of a small number of companies and individuals.

The customs duty free import will aim to activate the domestic reserves, currently held in storage, expecting even higher prices, he said.

Golubović added these imports will likely not lower the price of wheat, and consequently of bread, rather "keep them contained at a certain level." But he also warned that the "time of cheap food" in Serbia was "over".

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