Center for Strategic Studies and Reforms
Wheat Market Research - 2003 (March 2004)
Findings and recommendations
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Due to severe climate conditions
in 2003 Moldova faced a wheat crisis. Crop production failed, and wheat yield
was only 102 thousand tons as compared to 1181 and 1113 thousand tons in 2001
and 2002 correspondingly. For the first time in the last five decades a need for
large-scale import of wheat and flour emerged. The situation though was
aggravated by a swift rise in the prices of bread, wheat, and flour on regional
and world markets, which finally affected Moldova’s poorest population by the
sharp growth of prices for bread (by
39.8%) and flour (as much as 2.5 times).
In the paper there is assessed
the situation of the country’s wheat market in 2003 as regards both quantity
indicators (production, consumption, export/import, prices) and quality of the
state regulation measures, competitive environment, territorial aspects of the
“bread issue” and the impact of the bread price increase on the poor.
Recommendations include proposals to improve the legislation and mechanisms
regulating the wheat market, to form a state reserve fund and an intervention
wheat fund, to improve the system of wheat procurements and storage, and social
support for the vulnerable groups of the population.
This paper is based on the
Wheat Market Research carried out by the Center for Strategic Studies and
Reforms (CISR). The initiative of this study belongs to the EC – Food Security
Programme (EC FSP – Moldova). The findings, interpretations, and conclusions
expressed in this paper are entirely those of the authors (CISR’s members and
consultants) and should not be attributed in any manner to the EC FSP – Moldova
or the Government of the Republic of Moldova.