Government increases duty free quota on grain imports to 1 million tonnes

The government raised the quota for duty free grain imports to 1 million tonnes for this year. The Cabinet increased its duty free quota by 700,000 tonnes and set a 100,000 tonne duty free import quota for rye and a 200,000 tonne quota on other grains. Private companies will import 400,000 tonnes of wheat and 200,000 tonnes of other grains by Nov. 15. The rest of the planned amount will be imported by the state-owned Agricultural Market Agency (ARR). "Farmers who now held on to harvested grain in hopes of higher prices in the future should now be eager to sell after learning this," said a trader from private grain importer Nagrol Zbigniew Ohler. Analysts say if mills and animal feed producers decide to wait for cheaper imports, instead of buying on local markets, demand would subside and drive prices down. The first shipment of imported grain should reach Poland next month. The Central Statistical Office (GUS) said this year's harvest should be 18% lower than last year's 25.1 million tonnes due to drought and low use of fertilizers. (Reuters, Prawo i Gospodarka, page 1, 5) M.M.