News regarding cancellation of restrictions on cereals exports is welcomed by farmers
The representatives of farmers’ organizations received gladly the news regarding the decision of the Government to cancel compulsoriness on making export transactions with cereals only through the Universal Commodity Exchange of Moldova (UCEM). “Better later than never”, farmers say.
On Wednesday, the Cabinet Council changed the Decision no. 834, “on some regulation measures for the export of cereal products” of July 26, 2004, which includes some interdictions on abroad deliveries. The amendments will come into force on September 30, 2006.
However, this initiative does not belong on the whole to the Government and is not the direct result of the farmers’ protests. On one hand, on May 5, when the agreement with IMF was signed, one of the engagements taken upon by the Government was canceling cereal exports via UCEM only.
Solicited by Info-Prim Neo, the head of the National Federation of Farmers, Vasile Marzenco, mentioned that “this decision should have been adopted in 2005, however it is good that the Government, although later, changed its own decision”. According to Marzenco, due to these amendments we can expect this year for an increase of cereal exports.
“In the light of market economy, the farmer should independently decide what way to use while exporting production – through commodity exchange or on the basis of some direct relations with the client. Thus, until now there was no possibility to choose”, the head of the Federation of Farmers says.
Marzenco also says that canceling compulsoriness on registering export transactions at UCEM does not mean stopping the use the commodity exchange mechanism. “Commodity Market will continue to work, especially if UCEM will facilitate the process of finding clients”, Vitalie Marzenco concluded.
In the first half of 2006, Moldova exported cereals amounting to USD 16.28 mln, compared with USD 22.05 mln in the similar period of the last year or by 26% more.