In view of the grain market situation in Europe the government decided to phase out the export notification system for grains and oilseeds introduced in March last year – István Nagy, Minister of Agriculture, announced.
The minister recalled, that time, when the war broke out in February 2022, it implied the risk of a rapid, large-scale outflow of Hungarian grain under those conditions, in regard to the global supply fears caused by the critical size of Russian and Ukrainian grain exports disruptions.
According to István Nagy, the notification obligation served an important function, since continuous and up-to-date information was available on the products to be shipped from Hungary. It created the possibility of intervention, but did not cause disruption in exports, according to preliminary data, both of our main grains, corn and wheat could be exported around 2-2 million tonnes in 2022. The state did not interfere with the operation of the market, nevertheless, regrettably some buyers in the grain market took advantage of their power over farmers by referring to the notification system – he added.
The Minister explained that the market situation has changed fundamentally, as a result of the Ukrainian exports, which started at an increased rate from August 2022 and which have been delivered to the world market dynamically since then, the demand vacuum effect has disappeared, in fact, the demand for grains from all Eastern European member states has decreased significantly. The removal of the export notification thus does not pose a risk to the security of domestic supply –the minister highlighted.
The Ministry of Agriculture constantly monitors the grain market situation and takes the necessary steps to stabilize it – emphasized the minister.