Moldova extends grain import licensing by 3 months

MOSCOW. March 27 (Interfax) - Moldova's Emergency Situations Commission has extended the licensing system for the imports of three crops - wheat, corn and sunflower seed - to Moldovan territory by three months, the Agriculture Ministry said on its website.

The Moldovan Agriculture Ministry continuously monitors the country's grain stocks, it said. Monitoring results have confirmed that Moldovan farmers still have around 398,340 tonnes of wheat, around 1.3 million tonnes of corn and 250,000 tonnes of sunflower seed from last year's harvest.

As a result, it decided to continue the license-based import of wheat, corn and sunflower seed.

The main purpose of extending the licensing system is to keep domestic prices stable and create conditions conducive to local producers, including in order to maintain their competitive edge, the ministry said. The licensing mechanism is also intended to help dispose of the existing stocks and prevent the accumulation of amounts in excess of the domestic market's demand.

Only entities and individuals specializing in the production of oil and vegetable fats and milling products, as well as animal food producers are entitled to this import license, the ministry said.

One of the key problems facing Moldovan businesses is the absence of links between grain producers and processing enterprises, it said. Producers and processing enterprises need to develop cooperation, as chains for creating added value cannot be formed without both sides' participation.

Moldova has not imported wheat since October 2023, except for seeds for the spring sowing campaign, it said. A license has been received, enabling the import of about 1,500 tonnes of sunflower seed, including 1,200 tonnes for the confectionary industry, as these sorts are not cultivated in Moldova. A license for the import of 44 tonnes of corn to make popcorn has also been offered.

As reported earlier, Moldova's Emergency Situations Commission adopted a decision in early October 2023 to introduce a licensing system for wheat, sunflower seed and corn imports. The commission's decree, dated December 27, introduced the mechanism for three months.

Moldovan farmers have repeatedly staged protests citing grain market problems due to the low prices of wheat, corn and sunflower seed from neighboring Ukraine. Farmers complained that they have to sell their produce below its cost price.