Grain as Putin’s weapon? The expert explains who is responsible for the drop in prices

The past year was difficult for the grain market. The price fluctuations we have experienced are primarily the result of Russia’s attack on Ukraine, which had a significant impact on the markets. – Since the outbreak of the war on our eastern border, global markets have been severely deregulated. Putin has made grain a tool of his struggle, let me remind you that the war is being fought by Ukraine and Russia, two countries that are significant producers and exporters of grain – said Monika Piątkowska, president of the Grain and Feed Chamber, in an interview for Wprost.pl.

The impact of war

After the outbreak of war on world markets, grain prices rose sharply and then began to fall. The inflow of grain from Ukraine had an impact on this situation, although much less than what Polish farmers claimed.

– We remember agricultural protests and revolts, unfortunately fueled by politicians, regarding lower prices caused by the inflow of grain from Ukraine. I would like to deny it once again, it was not Ukrainian grain that lowered prices, but Russian grain – said Monika Piątkowska.

– The main factor influencing grain prices in Poland was the international stock exchanges, especially the Paris one. Of course, grain prices in Poland vary among regions. In fact, if we look at the eastern regions of Poland, prices were lower and this was actually the impact of the inflow of Ukrainian grain. However, it was not a determinant. Prices skyrocketed at one point, but it was the influence of international stock exchanges, let me remind you that Russia sold both its grain and that stolen from Ukraine at dumping prices, she added.

Polish exporters

Poland is also a net exporter of grain. As Monika Piątkowska says, Polish exporters took advantage of their opportunity and increased grain exports as much as the existing infrastructure allowed. – Exporters, both Polish and international, have made the most of the opportunities that have opened up for Polish grain. As much as the infrastructure capacity allows. We have been talking about the fact that port capacity is too low for many years, and we have just encountered it, said Monika Piątkowska.