The government’s actions were unreliable, ineffective and late, and the Minister of Agriculture contributed to the market chaos – according to the Supreme Court of Auditors’ report on the grain scandal.
From June 1, 2022, grain from international companies based in Ukraine could be imported into the territory of the European Union without any tariff or non-tariff restrictions under the so-called solidarity corridors. It soon became apparent that the grain – most of which would only be transported via Poland – in practice remained in Polish warehouses and created unfair competition for Polish farmers. Against this background, a dispute arose between Kiev and Warsaw, as the Polish side decided – albeit only in April 2023 – to impose and then, contrary to Brussels’ position, extend the embargo on some Ukrainian products.
NIK about the grain scandal
“The audit results are devastating for the government,” we read in “Rzeczpospolita,” which details the conclusions of Thursday’s Supreme Court report.
For example, the Supreme Court’s report shows that the competent state authorities have failed to protect Polish farmers from the consequences of uncontrolled grain imports from Ukraine. In the case of wheat, imports increased by as much as 16.8 thousand tons in 2022. per cent
“From January 2022 to the end of August 2023, i.e. during the period covered by the inspection, 541 companies imported 4.3 million tons of grains and oil plants from Ukraine worth PLN 6.2 billion, with the largest importer a company from the Mazovia Voivodeship. imported grain worth more than PLN 560 million, and a company from Pomerania imported grain worth PLN 497 million,” the newspaper reports.
NIK assessed that “the huge inflows contributed to a decline in the profitability of Polish agricultural producers and an increase in grain stocks: from 3.8 million tons in mid-2021 to 9.7 million tons in mid-2023.”
According to the Supreme Court of Audit, the then Minister of Agriculture, Henryk Kowalczyk, made an important contribution to the negative development of the situation. “Rzeczpospolita” writes that “the Supreme Audit Court’s report shows that the assessment of the head of the ministry was wrong and not supported by data or analysis”, and that “the decisions of producers not to sell grain turned out to be disastrous are: prices fell.” , and the longer a person waited, he lost more”, “especially since in the next season the cost of grain production, that is, the prices of fuel and fertilizers, increased significantly.”
The government’s action comes dramatically late
“The government’s measures to save the situation came dramatically late. The grain scandal was also intended to demonstrate that no instruments had been developed to counter the destabilization of the agricultural market. According to the Supreme Court of Audit, the state’s agricultural policy is without planning and market analysis, without long-term and forward-looking actions,” we read.
“Rzeczpospolita” further describes that “to reassure farmers, who are invaluable to PiS, the government launched a subsidy system before the October elections: it introduced the purchase of grain at a minimum price of PLN 1,400, and subsidized storage of grain. , fuel and fertilizers.” “However, due to the grain scandal, he lost a large part of the votes in the countryside,” the newspaper writes.
Source: Do Rzeczy
Roy Brown is a renowned economist and author at The Nation View. He has a deep understanding of the global economy and its intricacies. He writes about a wide range of economic topics, including monetary policy, fiscal policy, international trade, and labor markets.
