Grain importers are to be given additional storage space free of charge, allowing them to bulk-buy the staple food to offset rising international prices.
The measure means all of Malta’s storage silos, which can collectively hold 88,000 tons of grain, will be opened up to importers. Taxpayers will foot the cost of the longer-term storage.
Economy Minister Silvio Schembri revealed the measure on Wednesday morning when asked by Times of Malta about the government’s efforts to help cushion the rising price of foodstuffs.
Grain prices have soared on international markets in recent months, in large part due to Russia’s invasion of Ukraine. Both those countries are major exporters of grain, with Russia accounting for 20% of global exports and Ukraine 11%.
The government had already announced a temporary “price stability mechanism” in May for grain importers, to help mitigate those price pressures.
It is now extending aid by also allowing them to store larger amounts of grain locally for free, making it possible for them to take advantage of the lower costs of bulk purchases.
“All the storage silos are now open for our local importers. With more storage space than before, importers now can buy wheat and grain in bulk, and the increase in prices will not impact them and the local market so much,” the minister said on Wednesday.
“The government wants to be a supporting shoulder for our importers, farmers, and consumers. We are working hand in hand to ensure that the country is economically resilient now and in the future.”
Schembri was speaking at the Kordin Grain Terminal, where he unveiled plans to install a new crane come September.
Grain importing operations will stop for a month in September while the new crane is installed. All importers have been informed of the temporary halt in operations, the minister said, with ordinary service at the facility expected to resume by October.
The one month pause is needed to allow workers to dismantle the existing crane at the facility, which dates back to 1984, and install a new one. The project will cost an estimated €4 million.
Government has little control on increase in food prices
Apart from the increase in wheat prices, food prices in Malta are increasing at a higher rate than in the euro area, according to figures published by the Central Bank of Malta last week.
Schembri admitted that the government’s options when it comes to mitigating the rising prices of many foodstuffs were limited.
A €4 million investment will replace the current crane at Kordin Grain Terminal with a brand new one, with plans that the new crane will be in place by October. Photo: Chris Sant Fournier“When you have a large number of importers and products, it is much harder for the government to come up with the right formula to address this issue,” he told Times of Malta.
Nevertheless, government is talking to social partners about the issue, he said.
"We recently had a meeting on an MCSD level, where we had a detailed presentation of the increase in prices throughout different sectors so that the government can understand where there is a high increase in prices and see how it can intervene and support the sector."