Drought forces Poland to import grain, strong dollar makes it too expensive

The price of grain has risen dramatically in one week from zl. 530 per tonne to zl. 800 per tonne. This has been attributed to the time of year. It is normal for grain prices to rise just before harvesting and balance is restored through imports. This year, however, the high price of the dollar has made imports too expensive and unprofitable. Another factor is that drought has destroyed most of the Polish crops. Demand is exceeding supply, thus contributing to the rapid increase in grain prices. "The hike in prices is a curse for bakeries. We cannot keep prices of bread low with the price of flour so high," said one worried baker. According to the Farming Economy Institute, Poland may have to import 5 million tonnes of grain to cover the deficit. (Gazeta Wyborcza, page 24) J.K.