European Commission implements import duty on maize, sorghum and rye

09.08.2017

In light of an ample supply and low prices for maize, the automatic mechanism calculating import duties was triggered, setting as of Aug. 8 an import duty on maize, sorghum and rye at €5.16 per tonne, the European Commission said. The Commission said this will ensure that European producers are not put at a disadvantage in the current market conditions.

Published on Aug. 8, in the Official Journal, the decision is based on Regulation (E.U.) No 642/2010 regarding cereal sector import duties, which provides that the import duty on maize, sorghum and rye should be calculated according to the difference between a reference E.U. price and the U.S. maize price.

It comes in response to the situation on the maize world market where a record global maize harvest is expected in 2016-17, resulting in ample supply and low prices.

The latest forecast from the International Grains Council (IGC) estimates the 2016-17 global maize production at a record-high 1.072 billion tonnes, and carryover of world maize stocks at the end of the 2016-17 marketing year at 232 million tonnes also a record. Cumulative carry overs in the four major exporters (Argentina, Brazil, Ukraine and the U.S.) are forecast at a record 78 million tonnes.

The Commission said import duties should be fixed for the period from Aug. 8 and should apply until new import duties are fixed and enter into force. The individual tariff quotas are not affected by the Aug. 8 measure to set that the import duty on maize, sorghum and rye, it said.


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