EU allows intervention grain exports via Constanta

The Commission said it sought to address the export problems faced by landlocked countries such as Hungary.

"In member states which do not have sea ports, tenderers for cereals put up for sale are penalized by higher transport costs," it said.

"As a result of these additional costs, cereals are more difficult to export from those member states.

"The Romania port of Constanta was a traditional port of exit for the countries of eastern Europe before their accession. It is therefore necessary to include Constanta as a place for the calculation of the transport costs that can be reimbursed in the case of export."

Hungary and the Czech Republic officially requested additional subsidies to help them export some 5.5 million tonnes of cereals that would otherwise trigger huge storage costs.

With big harvests resulting in a hefty grain surplus and low prices in both countries, they argued that local exporters faced higher costs than many of their EU rivals because they had to transport cargoes to seaports from landlocked countries.

The EU ruled out specific export subsidies for them but officials said ways to help with transport would be considered.

Latest EU data show some 1.12 million tonnes of wheat and 664,000 tonnes of maize have been offered in Hungary since November 1.

The rule changes, published in the Official Journal, simplified the processes for opening tenders and relaxed rules on how information can be sent to interested parties.

Source: Reuters