Government approves duty-free grain, animal feed imports; food prices to go up

In an effort to curb inflation of particular kinds of grain and animal feed on the Slovak market from a bad crop and illegal exports both this year and last, the government approved temporary duty-free imports of these commodities that will last until June 30, 1997. The expected increase in grain prices is pegged at 16-19 percent this year, which will translate into a 10-12 percent increase in food prices. The government will also release 600 million Sk to compensate for high priced grain imports next year, and has given the Ministry of Finance power to impose grain price regulations. The Ministry of Agriculture will insure that companies that were part of illegal grain exports last year will not be allowed to engage in the coming grain imports.