U.S.D.A wheat flour subsidy allocations set for 1994-95

by Teresa Acklin
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   Seven countries and regions, including the former Soviet Union and sub-Saharan African nations, have been qualified by the U.S. Department of Agriculture to purchase 1.578 million tonnes of subsidized wheat flour under the Export Enhancement Program during 1994-95.

   The package is 8% less than the 1993-94 EEP package of 1,718,000 tonnes. The largest allocation of 504,500 tonnes is for Egypt alone. Its allocation in 1993-94 was 700,000 tonnes.

   The allocation of 100,000 tonnes, up from 75,000 tonnes in 1993-94, for the former Soviet Union now includes 25,000 tonnes toward sales to third-country buyers. “This will permit third-country purchasers of goods exported from the F.S.U. to act as buyers for wheat flour destined for the F.S.U.,” U.S.D.A. officials said.

   Allocations include Russia, Belarus, Kazakhstan, Mol-dova, Uzbekistan, Turkmen-istan, Ukraine, Armenia, Kyrgyzstan, Azerbaijan, Tajik-istan and Georgia.

   Yemen subsequently received an allocation of 400,000 tonnes after the initial assessment of the EEP. Yemen purchased all of its 400,000 tonnes allocated in 1993-94.

   The EEP began in the mid-1980s with the intent to make U.S. wheat more competitive in the world market and to match European Union export subsidies. The U.S.D.A. monitors sales of wheat to buyers designated eligible under the EEP through regular commercial channels. The U.S.D.A. pays the difference between the sales price and the U.S. asking price (which is normally higher) to the exporter. All subsidies will be paid in cash.

   The adjacent table outlines 1994-95 allocations by country, with 1993-94 allocation amounts and those purchased under the 1993-94 EEP.

in tonnes
Former Soviet Union100,00075,0000
African nations379,500398,00022,500