The government of Hungary can intervene in grain contracts

Published Nov 19, 2024

Tridge summary

The Ministry of Agriculture in Hungary is reviewing the quality inspection practice for the purchase of corn to increase transparency and market confidence. The move is aimed at addressing issues of mistrust in the grain trade and improving the pre-purchase inspection of cereals. The review also includes regulations to clarify contractual practices, such as the place of delivery, risk bearing, and payment obligation in grain transactions. The ministry's initiatives aim to protect domestic farmers from losses due to inconsistent quality testing and unclear contractual responsibilities, with new regulations expected to clarify transfer and payment obligations in grain contracts.
Disclaimer:The above summary was generated by Tridge's proprietary AI model for informational purposes.

Original content

On Sunday, the Ministry of Agriculture announced that "in order to increase the transparency of the purchase and to strengthen market confidence, the department will review the quality inspection practice for the purchase of corn." According to our information, new regulations are expected to tighten the contractual practice of the grain trade. In the announcement, István Nagy explained that in order to reduce and eliminate the widespread mistrust that has developed in the sector regarding corn purchase activities in the future, the ministry is reviewing whether the quality testing practice of cereals can be improved with regulatory tools. Based on the indications of the farmers, the pre-purchase inspection of cereals is currently carried out in a heterogeneous manner in Hungary, with particular regard to the determination of toxin content. This can cause considerable vulnerability and loss for domestic farmers, the ministry added. According to our sources who are familiar with ...
Source: Agronaplo

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