Bulgarian farmers have announced plans to set up a company for the export of grain in an attempt to eliminate go-betweens blamed for the low domestic prices.

The idea for the new company was prompted by the prices offered by the middlemen which are much lower than prices in the neighbouring countries, said Radoslav Hristov, executive director of the national association of grain producers.

Overproduction has pushed down grain prices this summer with the first shipments from the new crop fetching 210-240 leva/t without taxes. Prices were a hundred leva higher just a month ago.

In the run-up to the harvest campaign, farmers were vowing to hold out on purchase offers below 350 leva/t.

However, after the farming ministry announced that the crop this year will top 4.4 million tons, the buyers cut their price offers significantly.

"The data of the farming ministry is overstated and does not correspond to the actual yields. It can be claimed with certainty that 3.9 million tons of grain have been harvested this year and not the 4.4 million estimated by the ministry," said Hristov.

The farmers will make no profit on price offers of 280-300 leva/t with taxes, said Hristov.

In neighbouring Greece, grain trades at 370-380 leva/t. There have been also talks with Turkish traders for shipments at 330 leva/t but they were sabotaged by Bulgarian middlemen that bid prices down to 240 leva without taxes. 'We are sick of having our hands twisted by the millers and the traders and that's why we have decided to take charge of our grain exports," said Hristov.

The millers explained the low purchase offers with the fact that they still have stocks from last year's crop.

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