EU raises wheat subsidy

07 Oct, 2005

The European Union raised its wheat export subsidy 0.50 euros to a maximum of 8.00 a tonne on Thursday, more than doubling the volume covered from last week to almost 300,000 tonnes.
The EU's grain management committee also opened up French wheat intervention stocks for export, agreeing tenders to export 500,000 tonnes outside the bloc and 200,000 tonnes specifically for drought-hit Spain, French grain office ONIC said.
The higher refund will offer some cheer to exporters, who have called for higher subsidies to counter tough competition in north African markets from cheaper Black Sea grain.
The panel also made its first award under new tenders to ship intervention grain held in Germany, Slovakia and Hungary. A previous round of tenders earlier this season drew little interest from the trade.

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