As a largely agricultural country with an export-oriented wheat market, Hungary can not support any radical agricultural reforms in the European Union (EU), a Hungarian government minister said Thursday.

Jozsef Graf, Hungary's minister of agriculture and regional development,told a two-day joint congress of the International Food and Agricultural Trade Policy Council and the European trade association COCERAL in Budapest, that Hungary's agricultural sector had been export-oriented over the past 15 years.

Hungary's annual cereal output of around 12 million tons exceeds the need for domestic consumption, which is around 8 million tons per year, he noted.

For the past two years following its EU accession, Hungary has accumulated substantial stocks of surplus cereals, partly as the result of an exceptionally good harvest last year, he said, adding that the country's contribution to the EU of its surplus wheat constitutes 50 percent of the intervention stock of the 25-member bloc in the 2005-2006 fiscal year.

Hungary's maize contribution alone accounted for 82 percent of the EU intervention stock, Graf said.

The minister said that 70 percent of the Hungarian territory was arable land, and due to its landlocked conditions, the country's transport costs significantly hiked up the price of its wheat.

Although the Hungarian government is planning to enhance competitiveness in the sector, such as further promotion of animal husbandry, modernization in horticulture and better marketing, Hungary opposes radical EU reforms of agriculture, Graf said.

Hungary is not in favor of changing the Common Agricultural Policy unless in areas that are absolutely necessary, the minister said.

At the joint congress, EU Agriculture Commissioner Mariann Fischer Boel warned against the size of the EU's intervention wheat stock, which has swollen from 3 million tons in 2004 to 18 million tons at present, calling for reform of the grain market.

Key topics on the congress agenda also include agricultural negotiations at the World Trade Organization, impact of EU enlargement and sustainability goals, including expansion in biofuels trade.

Source:Xinhua