The grain advisory committee will meet on Thursday morning to examine the sufficiency of grain on the market.
Agricultural organisations have been asking the government for the release of strategic stocks and there is also concern that grain traders are not keeping the required amounts for these reserves, CNA reported on Thursday.
As provided by the Conservation of Stocks of Raw Materials for Feed and Grain for Human Use Act of 2021, which was passed on the dissolution of the Grains Commission, the possibility of maintaining stocks of raw materials of feed and grain for human consumption should be ensured and these stocks are to be placed on the market with the aim of limiting the negative effects in cases of shortages or extreme supply difficulties, due to war conflicts, natural disasters, health crisis, financial problems and other unforeseen emergency situations.
When the advisory committee finds that there are grain shortages, a decision is made to release the strategic reserves but farmers believe there are already not enough strategic stocks both for animal feed and human consumption, although in the case of the latter, three-month’s worth of stores is required.
Early this month, officials and farmers said they did not anticipate either a spike in grain prices or immediate shortages after the lapse of the Black Sea grain deal in July.
In mid-July Russia decided not to extend a 2022 agreement that had allowed Ukraine to export its grain by sea despite a wartime blockade, a deal seen as essential to keeping global food prices stable.
Agriculture ministry official Constantis Spanashis told the Cyprus News Agency at the time that the island imports more than 85 per cent of barley for animal feed. Meanwhile Cyprus is entirely reliant on imports of corn, soybeans and other derivatives.
Regarding grains for human consumption, Spanashis noted that “things are a little better, as up to 30 per cent [OF DEMAND] can be covered by local production, especially durum wheat.”
On whether Cyprus has been affected by Russia’s withdrawal from the Black Sea grain deal, the official commented that the development caused some “market disruption.”
He added: “We will not have a significant disruption here, beyond the small price increase recorded.”
The official said he did not expect further price hikes, due to the fact that alternative export routes to the European continent have kicked in.
According to Spanashis, grain prices jumped by 5 to 10 per cent soon after Russia walked out of the Black Sea agreement.
That said, he pointed out that no new grain shipments have arrived in Cyprus since then. The first shipments after the lapse of the deal were expected shortly.
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