Billions of Euros in losses for Romania due to lower price of wheat

Billions of Euros in losses for Romania due to lower price of wheat

Although this year the cereal harvest is the richest from the last 8 years, it brings down prices of grain, the GDP being prejudiced by EUR2.5 billion. Compared to last year, the grain production increased by almost 40 per cent, however, the price went down with around 30 – 40 per cent in 2013. The situation is caused by the purchase prices charged by traders in Romania and that are much lower than those charged for grain from countries like Italy, France or Germany. 'On June, 10, 2013 the price per tone of wheat was EUR227 in Romania, while on September, 4 this year, the price was EUR140. Meanwhile, the price per tone on the European market has not gone below EUR180 – EUR 200. There's a similar situation with maize trading whose price was EUR208 on June, 10 going down to only EUR119 by September, 9. The purchase price was EUR171 abroad.', says Laurentiu Baciu, the president of the Romanian Producers Associations League ( LAPAR).

The lower prices are due to the foreign competitors in the area where the agriculture sector is heavily subsidized. 'For instance, we cannot have a different approach, as those from the Madrid Stock Exchange can have, because there are different markets, normal ones, having clear rules for everyone. In our situation, we compete with imposed rules we have not accepted. In other words, we compete with wheat and maize produced in Russia and Ukraine, where the agriculture sector is heavily subsidized.', says Daniel Botanoiu, secretary in Romania Ministry of Agriculture and Rural Development.


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