Tuesday, 26 April 2011
Buckwheat; is chasing the market the right policy?
If this coming season we see the plantings the same as 2010 but yield are at 2009 levels then total buckwheat production will stand at just shy of 149,000MT.
That’s very close to domestic demand.
But we know the government is actively “encouraging” growers to plant the stuff so let’s assume plantings are up by say a conservative 10%, then production will at 163,700MT, well over domestic consumption.
There’s a fine line between shortage and surplus and state market mechanisms are generally just too blunt a tool to get the job right, ask the EU.