Romania mulling measures to protect farmers at Constanta port, source says

Comvex SA

23/06/2023 13:28

BUCHAREST, June 23 (Reuters) - Romanian officials are
considering measures to give local farmers priority access to
the Black Sea port of Constanta during the harvest season, an
agriculture ministry source said, which could restrict the flow
of Ukrainian grain.
    Ukraine, one of the world's leading grain and oilseed
exporters, saw its Black Sea ports blocked after Russia's
February 2022 invasion and found alternative shipping routes
through neighbouring European Union states. 
    Even after a deal brokered by the United Nations and Turkey
gave Ukraine limited access to three of its Black Sea ports,
Romania's Constanta has become its biggest alternative shipping
route, having handled about a third of Ukrainian grain exports
since the Russian invasion.
    But Constanta would struggle to accommodate a surge in
Romanian and Ukrainian crops once the harvest starts in a few
weeks. 
    "Romania's farm ministry will propose in talks with Brussels
and Kyiv an optimisation of commercial grain flows to Constanta
port to protect local farmers for the duration of the harvest,"
a ministry source told Reuters. 
    The source did not elaborate on the measures, but added that
better clarity on expected volumes could help organise flows.
    The harvest season begins around July, when Ukraine's Black
Sea grain corridor could collapse, and it typically runs until
October.
    Romania is one of five eastern European Union countries that
saw an influx of Ukrainian grain since Russia's invasion,
leading the EU to approve temporary trade restrictions and a
support package. 
    At its peak, Constanta port handled roughly 25 million tones
of grain exports a year.
    Romania is one of the EU's biggest grain producers. Agritel
estimates its wheat harvest at 8.76 million tonnes, while grain
trade association Coceral sees it at 9.57 million tonnes and
Romanian consultancy AGRIColumn at 10.5 million tonnes.
    Ukraine is a major global grain grower and exporter, but
this year's output is expected to be reduced because of Russia's
invasion to around 45 million tonnes of grain from 53 million in
2022. By comparison, Romanian consultancy AGRIColumn expects
Romania will have up to 21 million tonnes of grains and oilseeds
available to export in the 2023/2024 season.

 (Reporting by Luiza Ilie; Editing by Louise Heavens)
 ((luiza.ilie@thomsonreuters.com; +4021 527 0312; https://www.reuters.com/journalists/luiza-ilie))