Polish PM attacked over grain glut

13 August 1997

Polish PM attacked over grain glut

POLANDS Peasant Party (PSL) is threatening a no-confidence vote in prime minister Wlodzimierz Cimoszewicz because of falling grain prices and a shortage of storage capacity for this years harvest.

More than 3m tonnes of imported grain have glutted the market in the past year. This is despite the prospect of a harvest that is expected to yield 1.1m tonnes less than last year. Stocks stand at about 3.5m tonnes – about two-thirds of the amount which farmers would expect to sell each year at harvest time.

The PSL accuses the prime minister of ignoring farmers plight. He refuses to accept a 120m zloty (£20m) government loan plan to finance advance payments on about 400,000 tonnes of grain from farmers willing to deliver at a later date. Such a solution would ease pressure on the market, maintain prices and it would mean smaller outlets could sell their grain.