The government introduces the grain export notification obligation

(Photo: PIxabay)

The head of the ministry reminded that the war that broke out in February 2022 contained the risk of a rapid, large-volume outflow of Hungarian grain under the circumstances at that time, given the global supply fears caused by the critical disruption of Russian and Ukrainian grain exports.

According to István Nagy, the reporting obligation fulfilled an important function

As a result, continuous and up-to-date information was available on the products intended for shipment from Hungary. It created the possibility of possible intervention, but at the same time it did not cause an interruption in exports, since based on the preliminary data, around 2 million tons of each of the two main cereals, corn and wheat, could be exported in 2022. The state did not interfere in the functioning of the market, despite this, some grain market purchasers regrettably abused their dominance over farmers by referring to the notification system, he added. The minister explained that the market situation has now fundamentally changed, as the demand for grain from all Eastern European EU member states has ceased, and the demand for grain from all Eastern European EU member states has been significantly reduced due to Ukrainian exports, which started at an increased rate from August 2022 and have been delivered to the world market in a dynamically increasing manner since then. . The exit thus does not represent a risk in terms of the security of the domestic supply, he pointed out.

AM