Wheat crop target exceeded

The amount of wheat harvested so far exceeded the initial expectations of the Agriculture Ministry – 7.1 million tonnes, from more 96% of the cultivated surface, compared with the 6.8 million tonnes estimated, but the price for which processors are buying the crop is lower than the one announced by the authorities.

Processors in the milling and bakery industry feel the 43% interest charged by Banca Comerciala Romana (Romanian Commercial Bank-BCR) and CEC (Romanian Savings Bank) for the loans granted for purchasing wheat, based on a recent Government decision, is too high, which makes processors buy at 2,500-2,900 lei instead of the 3,200 lei set previously.

The Government endorsed a decision allowing processors to contract loans from banks in order to buy two million tonnes of wheat and 400,000 tonnes of barley. “BCR and CEC charge 43% in interest, higher than Banca Romana pentru Dezvoltare (Romanian Development Bank- BRD), with which we have negotiated credits with 37% interest,” Rompan chairman Aurel Popescu said.

He specified that processors could buy the new wheat at 3,200 lei, provided that interests on the loans granted by the banks for purchasing wheat should not exceed 15%. The chairman of the Romanian Farmers Association Adrian Radulescu said the processors were buying wheat at no more than 2,900 lei.

“The processors have not taken the loans for purchasing wheat yet, because the procedure to do so is slow. The small producers that have small amounts of wheat are selling it, but we cannot sell for less than 3,000 lei/kilo because we would go bankrupt this way,” Radulescu added.

The representatives of the Agriculture Ministry, of the Finance Ministry and of the Employers Associations in the milling and bakery industry agreed upon a 3,200 lei/kilo wheat price, with the Employers Associations to take loans from BCR and CEC as of August 1. Mediafax