Government discusses solutions to problems in grain sector with farmers

This week, Government will organize a meeting on the transit of Ukrainian agricultural goods through the territory of the Republic of Moldova, with the participation of representatives of the authorities, Moldovan Railways, and the agricultural sector. The decision follows Prime Minister Vasile Tofan’s meeting with the executive director of Farmers’ Power Association, Alexandr Slusari.

Government spokesperson Dumitru Ciorici said that the discussions between the prime minister and the farmers’ representative focused on the main challenges in the sector and on identifying solutions.

“Prime Minister Vasile Tofan had a meeting on Friday with the executive director of Farmers’ Power Association, Alexandr Slusari. The discussions focused on the challenges in the agricultural sector and possible solutions. The prime minister appreciated Mr. Slusari’s constructive approach, as well as the arguments based on data,” Dumitru Ciorici said.

According to him, in the coming days a meeting dedicated to the transit of Ukrainian agricultural goods through the Republic of Moldova will take place. Representatives of the Ministry of Infrastructure and Regional Development, the state enterprise “Moldovan Railways”, as well as representatives of the agricultural sector, are expected to participate in the discussions. 

Farmers’ Power Association states that during the meeting with the prime minister, Alexandr Slusari insisted on the need for the direct involvement of agricultural producers and exporters in managing the transit of Ukrainian goods. According to the association, the discussions addressed the situation on the cereals and oilseeds market, the logistical bottlenecks in the region, forecasts regarding the harvest in the Republic of Moldova, and the decline in wheat and rapeseed prices in recent weeks.

“Farmers’ Power” claims that farmers are concerned that poorly organized transit could affect exports of domestic production. The association points to the experience of 2022–2023, when, according to farmers, logistical problems and increased imports of cereals and oilseeds from Ukraine created additional pressure on Moldovan producers. The organization is asking the Government to present a plan regarding the volumes of goods that are to transit the Republic of Moldova in the coming months and how these will be aligned with the capacity of national infrastructure and with the needs of Moldovan exporters.

Another issue raised by the association is the licensing of imports of cereals and oilseeds from Ukraine. The association is calling for a return to an import control mechanism, invoking the model previously applied in the Republic of Moldova and the measures currently in place in Romania. At the same time, the organization maintains its opposition to a potential increase in VAT for farmers, arguing that the cereals and oilseeds sector is going through a difficult period.

According to the association, the VAT issue was not discussed in detail at the meeting with the prime minister due to time constraints, but the organization’s position was conveyed to the Government and the Ministry of Finance.

“Farmers’ Power” announces that it will monitor the outcome of the consultations scheduled for this week. The organization’s council has decided that, in the absence of progress by 21 August regarding transit control, import licensing, and the avoidance of a VAT increase, the association reserves the right to organize protests.