In a move to safeguard their domestic agricultural industry, Poland and Hungary have jointly announced their decision to prohibit the import of grain and other food items from Ukraine, their neighbouring country. The decision comes in the wake of a surplus supply of these products, leading to a significant drop in prices across the region.
In response to Poland's decision, Ukraine has expressed regret, stating that implementing unilateral and drastic measures will not expedite a favourable resolution.
The recent invasion by Russia has led to the blockage of several Black Sea ports. As a result, Ukrainian grain, which is comparatively cheaper than the one produced in the European Union, has been unable to reach its intended destinations. This has caused logistical bottlenecks, leading to a grain surplus in Central European states. Unfortunately, this surplus has adversely affected the prices and sales of locally produced grains, causing significant losses to farmers in the region.
Last month, the prime ministers of five eastern European countries wrote a letter to the European Commission, expressing their concern over the significant surge in the production of commodities such as grains, oilseeds, eggs, poultry, and sugar. The prime ministers stated that this increase was unparalleled and suggested that the imposition of tariffs on Ukrainian agricultural imports should be contemplated.
Poland's ruling Law and Justice Party (PiS) is facing a political challenge in an election year due to the impact of oversupply, which has resulted in stagflation in the country's economy.
During a party convention, PiS leader Jaroslaw Kaczynski announced that the government had implemented a new regulation prohibiting grain entry and importation into Poland, along with several other types of food from Ukraine.
According to the official statement, a wide range of goods, from grain to honey products, will be incorporated into the government regulation.
According to Ukraine's Ministry of Agrarian Policy and Food, Poland's recent ban on Ukrainian food products directly conflicts with established bilateral export agreements. The ministry has urged for discussions to be held to resolve this issue.
In a statement released, it was emphasized that while Polish farmers are facing a challenging situation, the most difficult problem is currently being faced by Ukrainian farmers.
On Saturday, the government led by nationalist Hungarian Prime Minister Viktor Orban announced its decision to join the ban. The reason cited for this move was the potential harm the existing situation could cause the farmers in the region.
Hungary has announced a ban on grain and other food imports, which is set to expire at the end of June. However, no specific details have been provided regarding implementing the ban.
In a recent statement, Poland's Kaczynski affirmed that his country maintains an unwavering commitment to its friendship and alliance with Ukraine. The individual in question has received our steadfast support, both presently and in the future. According to the speaker, it is the responsibility of all states and authorities, particularly those considered to be effective, to safeguard the welfare of their citizens.
According to Kaczynski, Poland is ready to initiate discussions with Ukraine to address grain.
The Hungarian government has expressed its desire for regulatory modifications at the EU level. This includes a reconsideration of the removal of import tariffs on Ukrainian goods.