The Ministry of Agriculture of Serbia has prepared for today's session of their Government a proposal for a decision on lifting the ban on the export of cereals and edible sunflower oil with monthly quotas for export to neighboring countries, while the export of flour will most likely be without restrictions, "Vijesti" has learned.
If the proposal is adopted and immediately enters into force, for Montenegro, which traditionally imports most of these goods from this closest and cheapest market, it will mean stability in the supply of domestic consumers, but also that there will probably be no new increase in prices.
Domestic importers, traders and bakers expect to receive new prices from their suppliers from Serbia.
They could be slightly higher than before the introduction of the export ban on March 11, but lower than the current prices for wheat and flour from other markets, including transportation costs.
In the past two weeks, part of the domestic bakers and traders have been purchasing flour from Bulgaria at higher prices and considerable transportation costs, which is why they were considering a new increase in the prices of basic white wheat bread. That decision will await the calculations with the new prices of flour from Serbia.
The price of a loaf of basic bread rose from 50 to 70 cents in January, and then to 80 cents in March, after the ban on the export of wheat and flour from Serbia was introduced.
According to "Vijesti" information, the monthly export quota for wheat and corn could be 350 tons each, and 30 tons for oil. The quota would also be determined by the countries for which exports are allowed, depending on their past imports and Serbia and the total need for those products. The quota system is introduced in order for the country to protect its market, but also to prevent possible smuggling and resale of surpluses to countries to which export is not allowed.
The Serbian Grain Association, which brings together the largest producers and exporters of grains, has lobbied and led public campaigns for the lifting of the export ban in recent days. They announced that they have over a million tons of wheat and 900 tons of corn in silos and warehouses that they could not export, and they must start emptying them because the new harvest begins in three months.
The President of the Government of the Republic of Serbia, Ana Brnabić, spoke yesterday with the representatives of this Association and the Ministry of Agriculture, and the topic was the decision on the temporary ban on the export of wheat, corn and sunflower oil and their analysis.
As stated in the announcement, the Prime Minister presented a proposal to continue the analysis of the current situation on the domestic market when it comes to these agricultural and food products, after which a new meeting would be held with representatives of the Serbian Grain Association.
"According to her words, it is important that the dialogue with grain producers is established and that all future decisions will be made together. Brnabić emphasized that the state fully understands the situation in which producers, processors and exporters of grain find themselves and that it will do everything and find a way to help them as well, while ensuring maximum security in the supply of citizens of Serbia. The next meeting of the representatives of the Serbian Grain Association and the Government of Serbia is planned in the coming days, when, with more detailed and precise market analysis and information, it will be possible to discuss concrete ways of solving this issue," the press release from the Cabinet of the President of the Government of Serbia stated.
The millers are threatened with fines, and the flour mills are threatened
Millers in Serbia have started to stop the production of flour because stocks are huge due to prohibited export, and due to long storage it is possible that the flour will go stale, millers' representatives told Beta yesterday, as reported by the newspaper "Danas".
Director of the Business Association of Millers and Pasta Factories "Žitounija", Zdravko Šajatović said that flour stocks are around 20.000 tons and that millers are slowly stopping production because they have no one to sell it to.
"The damage from the export ban is huge because there is a risk that customers who have not been supplied with flour despite the contract will sue the producers, and the arbitration in London is efficient and delivers judgments quickly after the contract is attached," Šajatović said.
As he said, producers in Serbia could be exempted from the fine by "force majeure", that is, if the state made a decision to ban exports, but given that exceptions were made and wheat delivered to North Macedonia, about 100.000 tons, to Albania, about 30.000 tons and Italy around 18.000 tons, "force majeure" will not be an excuse.
The owner of the "Žitopromet" mill in Senta, Predrag Đurović, said yesterday that he has 1.500 tons of flour in stock and that he will stop production in a day or two because he has filled all storage capacities.
"We have created enormous stocks that we cannot export. This ban stifles our production, and huge amounts of flour can spoil," said Đurović.
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