Moldovan farmers seek grain import curb extension until 2027

The Farmers' Force Association warned Thursday it will stage protests with agricultural machinery unless authorities meet its demands, including extending grain import licenses, by October 30.

Import license extension sought until May 2027

While the association initially requested extending the import licensing for grain and oilseeds until the end of the year, its council modified the demand following consultations. Farmers now seek the measure's application until at least May 31, 2027.

Agricultural producers welcomed the government's decision to drop a planned value-added tax (VAT) increase from 8% to 12% for grains and oilseeds. However, they demand the withdrawal of a proposed reverse charge mechanism, arguing it would complicate their operations, and insist on maintaining the 8% VAT rate for sugar beets.

Other demands include settling per-hectare direct subsidies for sugar beet producers by the end of the year. From 2027, the association seeks direct subsidies for micro, small, and medium-sized farmers for areas sown with grains and oilseeds.

The association also requested an excise duty refund for diesel fuel purchased between June 1 and December 15, 2026, for agricultural works. Furthermore, farmers demand the establishment of a permanent excise refund mechanism.

“We are willing and insist on negotiating the mentioned demands with the Ministry of Agriculture, the Ministry of Finance, the Government, the Parliament, and the National Bank to resolve them,” the association noted in a press release.

Deepening agricultural sector crisis

The association reported the sector's situation has worsened over the past five years due to natural disasters and an agricultural funding deficit.

“In 2026, a rapid degradation is also observed due to the exponential increase in input prices and the export logistics crisis caused by the war in the region. Diesel prices have increased by nearly 100%,” the farmers' representatives stated.

The association highlighted a 50-70% surge in costs for fertilizers, spare parts, and electricity. Despite higher stock market quotes, grain and oilseed prices remain below expectations and fail to provide minimum profitability for certain crops.

Ukrainian imports and financial catastrophe risk

Without domestic market protection against Ukrainian grain and oilseed imports, local farmers face a financial catastrophe, the association warned.

“Licensing imports from Ukraine is currently saving us from an even steeper price drop. Ukrainian farmers, facing Black Sea port blockades, are forced to sell their products well below cost. The average sunflower price in the neighboring country is approximately $0.11 (approx. 2 MDL) lower than in Moldova. Wheat and corn acquisition prices are approximately $0.06 (approx. 1 MDL) lower. In some regions, especially near our border such as Vinnytsia, this difference is even greater,” the association reported.

The situation could further deteriorate, as an estimated 25% of farmers face insolvency without access to financing. Many risk permanent closure once the moratorium on forced execution expires, the association added.

Parliament reviews fiscal and customs policy

Lawmakers are reviewing the draft law on next year's fiscal and customs policy in its second reading on October 22. Approved amendments include maintaining the 8% VAT rate for grains until 2028.

According to the Ministry of Finance, the reverse charge mechanism, intended for grain transactions between VAT payers, would provide economic predictability and facilitate VAT recovery under the law.

Meanwhile, the government proposed applying temporary licensing for grain and oilseed imports only until October 31.

Prime Minister Vasile Tofilat noted that such state interventions disrupt market balance. He stated the measure protects farmers but disadvantages industry representatives who lose access to competitively priced raw materials, ultimately leading to higher consumer prices.

Translation by Iurie Tataru

RELATED COVERAGE

Moldovan farmers seek grain import curb extension until 2027

Elena Munteanu