The government will buy 36,000 tons of barley and corn, in two shipments, to ease spiraling prices and a shortage of grains on the market in the wake of Russia’s invasion of Ukraine, Agriculture Minister Costas Kadis said on Tuesday.
He told a House Agriculture Committee meeting that the ministry will then work with importers to manage these strategic reserves.
Kadis said that he will submit a proposal to cabinet on Wednesday.
The total cost will be €12.5m, with the state taking what he described as a precautionary measure in order to ensure adequacy of stocks.
Energy Minister Natasa Pilides, whose portfolio also includes industry, commerce and consumer protection, said that mechanism must be found to support those affected while ensuring that there is no profiteering at the expense of the taxpayer and only those business groups that qualify are helped.
Grain importers and livestock breeders last week sounded the alarm over a surge in prices following Russia’s invasion of Ukraine, and Akel called on the government to import grains directly and introduce a price ceiling.
Cyprus is understood to have enough stocks for livestock for six weeks and human consumption for four months.
Russia and Ukraine are two of the world’s biggest grain suppliers. The war and the sanctions against Russia have led to a scramble for alternative supplies.
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