Montenegro pellet producers warn of bankruptcy amid price caps

Montenegrin pellet producers and the Montenegrin Wood Processing Alliance have warned that government measures, including price caps and potential export bans, could lead to business bankruptcies and the cessation of domestic production. The industry is currently facing extremely high demand, which may result in short-term delivery delays.

While the government has set price limits for pellets at 250 and 270 euros per ton, citizens have reported difficulties in securing supplies, with some claiming that available stock has already been diverted for export. Minister of Agriculture, Forestry, and Water Management Vladimir Joković stated that an export ban may be implemented if the shortage persists.

Producers maintain that they are not responsible for the current supply confusion and emphasize that regional pellet prices are significantly higher than those in Montenegro. They argue that radical measures like export bans are not long-term solutions and could force the country to rely on expensive imports if local factories close.