Pellet producers threatening to shut down production?

SARAJEVO, (Patria) - Pellet producers in Bosnia and Herzegovina are protesting after the Council of Ministers' latest decision to ban the export of this fuel until January 31 next year. From Banja Luka, they announce more rigorous measures if an adequate solution is not found within seven days after supplying the entire market.

"Over 95% of the market is supplied. Today we heard from colleagues that certain parts of the market have supply problems. The association has agreed to send the necessary quantities of pellets from other parts of the country to regions where the fuel is lacking," said Goran Ivanović, president of the Association of Pellet Producers in Bosnia and Herzegovina.

Eighteen representatives of the largest pellet producers met in Banja Luka. They concluded that public procurement could be the motive for the Council of Ministers to continue the export ban, and they will insist that these procedures start earlier in the coming period so that producers can supply public institutions on time.

"We will set a deadline of seven days to supply the rest of the market. Real reactions to the further ban will follow after that," announced Ivanović, emphasizing that there are real possibilities for reacting to the ban, which include addressing international institutions, even suspending production or protesting.

The Council of Ministers' decision, made on October 28, contradicts the proposal of the BiH Presidency member to approve the export of 50% of the fuel quantities and limit the price per ton to 550 KM for the domestic market.

The Association says that, given the Council of Ministers' decision, this proposal is no longer an option, so they are calling on customers who have not yet been supplied to do so within seven days.

In the previous period, they say, they were also heavily targeted by inspection controls aimed at determining the quantities of goods in stock and potential excess profits.

"The current price per ton of pellets is between 650 and 750 KM, while last year at this time it was around 450 KM. The price of pellets has not doubled, although the costs have doubled," it was stated at the meeting of pellet producers.

They say all options are better than an export ban, but only if they do not go below the producers' profitability threshold.