Farmers in Serbia have expressed skepticism about the state’s plan to buy a small quantity of new wheat crop at about 25 dinars per kilogram (including VAT), saying it will not meaningfully help them. The price offered by the Republic Directorate of Commodity Reserves is only slightly better than the current market price of 19-20 dinars, which limits the incentive for most farmers to sell to the state.
Nedeljko Savić, president of the Association of Farmers “Stig,” pointed out that the planned purchase of around 50,000 tons represents only about two percent of the estimated three million tons wheat crop. This small volume will have “an almost insignificant impact” on market prices. Only a limited number of farmers will be able to sell to the reserves, while most will be forced to sell on the open market due to loan obligations. Savić himself said he would not sell to the reserves at those prices as he does not need immediate cash.
Dragan Kleut, president of the Federation of Associations of Banat, added that the offered price does not even cover transportation costs if wheat must be stored far from the state facilities. He emphasized that only a few individuals will manage to negotiate sales with the reserves, while others will have to accept market prices dictated by monopolists, currently around 19-20 dinars per kilogram compared to 30 dinars on the Budapest stock exchange.
Kleut also criticized the stalled efforts of a commission tasked with regulating and opening a real grain trading stock exchange, which has seen no progress in two years. He noted that 15 years ago, wheat cost 24 dinars per kilogram while diesel was 75 dinars per liter; today, wheat is cheaper but fuel costs have more than doubled.
Most farmers, he said, will need to sell their grain to cover loan payments on machinery. Selling at the reserve price is unlikely to cover costs or make it worthwhile to store grain for a potential future price rise, especially considering storage expenses like dusting and maintenance fees.
Despite these challenges, the harvest has begun with generally solid wheat quality, though yields vary depending on region and rainfall.
