Moldova's government to recommend introducing licensing regime for imports of cereals; PM says cabinet tries to protect Moldovan producers, exporters

The government will recommend the introduction of a licensing regime for imports of cereals. The measure is temporary, valid until October 31, and has been adopted in an exceptional context, in order to protect Moldovan producers and exporters of cereals. Prime Minister Vasile Tofan today made statements to this effect.

According to the official, the measure and the concrete licensing mechanism are to be discussed at the next cabinet meeting, scheduled for next week.

“A similar mechanism was applied in the period 2024–2025, with beneficial effects for domestic cereals’ producers. In parallel, we must work on what matters in the long term: reducing logistics costs, improving access to markets, developing storage and processing capacities, facilitating access to finance and enhancing the competitiveness of agriculture,” said Vasile Tofan.

The PM referred to the importance of this decision for protecting Moldovan  producers and exporters of cereals.

“There are decisions that are easy to make and decisions where any option involves certain costs. Licensing imports of cereals is one of them. Normally, I believe the state should intervene as little as possible on the market. When we introduce licensing, we are trying to protect Moldovan cereals’ producers and exporters. But this protection also has a cost: it can make raw materials more expensive for the milling, bakery and livestock sectors, as well as for the oil industry. And if these sectors lose competitiveness, we risk ending up importing more flour, meat, milk or oil—products with higher added value—instead of producing them here, in Moldova. There are 80/20-type decisions, where the arguments are overwhelming in a certain direction. The most difficult ones are the 50/50-type, when you must weigh legitimate but different interests and choose the solution that involves the lowest risks for the economy as a whole. This is one of them,” noted Vasile Tofan.

The prime minister emphasized that developments this year also offer more reasons for optimism for representatives of the agricultural sector.

“The first information about this year’s harvest looks good. In the case of rapeseed, which is harvested earlier, yields have been good in many regions and prices are higher than last year. The external context can also help us: in Europe, prospects for some crops have deteriorated sharply, especially for corn, whose harvest is currently estimated at a level almost 20 per cent below the average of the last five years. A reduced European supply should support regional prices fort cereals,” the official stressed.

Vasile Tofan said that the authorities would not ignore farmers’ concerns and that the risk of additional pressure on prices would be treated with utmost seriousness.

“This does not mean that we ignore farmers’ concerns. Agriculture operates with small margins, high risks and on a regional market affected by war and logistical disruptions. In such a context, even the risk of additional pressure on prices must be treated seriously. Protecting farmers is important. Equally important is not to unintentionally weaken other branches of the economy that depend on cereals,” the PM underlined.

The licensing regime requires authorization of imports of the targeted agricultural products, giving the authorities the possibility to monitor trade flows and intervene promptly in case of imbalance. At the same time, the measure encourages the use of domestic production, contributing to the economic stability of Moldovan farmers.