Bosnia Running Out of Grain

[IVY]

Bosnians rushed to the stores Friday to buy flour after officials announced the country's stocks may run out in two weeks.

Bread and flour producers said drought destroyed 30 to 40 percent of crops and additional imports were necessary, but neighboring countries _ from where Bosnia mainly imports _ do not have enough for themselves.

"The situation is so alarming that some regions of Bosnia-Herzegovina may run out of bread," warned Miroslav Cosic, who represents flour producers in Bosnia's Chamber of Commerce.

The government should ask neighboring Serbia and Croatia for additional corn and wheat and try to import 150,000 tons of grain from the United States and Argentina, said Muhamed Pilav, an official at one of the largest bakeries in the country, Dukat.

However, deliveries from the U.S. and Argentina take 60 days, Serbia has already stopped further exports of wheat because it may not have enough for its own needs and Croatia is expected to do the same.

Producers concluded at a meeting on Thursday that the prices of basic food products will have to rise as much as 50 percent and representatives of consumer associations asked the government to change the law and impose a zero VAT policy on basic food products.

Bosnia's prime minister, Nikola Spiric, told media Friday that a zero-VAT policy is not possible "because the European Commission would not allow it," but that his government is working on programs that would help citizens deal with the price rises.