Agency for Intervention and Payments in Agriculture to manage foreign funds as well

Starting from 2013 the Agency for Intervention and Payments in Agriculture (AIPA) will manage not only budget subsidies for farmers but also certain foreign funds, announced AIPA director Petru Maleru. The Agriculture Competitiveness Project, which is awaiting the WB Board's approval in May, includes two grant components and both will be implemented by AIPA. The first component aims to provide financial support for post-harvesting handling (including by opening packing, storing and refrigerating facilities), and the second will provide subsidies to producer groups. Other potential foreign donors are being looked for. The Ministry of Agriculture and Food Ministry is finalizing a draft Law on Producer Groups, which is a new instrument used in Europe where five or more producers associate to minimize production and selling costs. It is planned that the grant components will have a financing of $1 million for 2013 and a total of $5.4 million over a span of three years, revealed Maleru. “AIPA works to improve the subvention provision procedures and enhance their transparency. In the next few months, a Call Center will be inaugurated, and starting from autumn the applicants will be able to follow on-line how their applications are being processed”, said Maleru. He also informed that 60 out of 400 million lei, the total amount of the agricultural subsidies budget in 2012, was allocated under the applications submitted in 2011; a further 130 million lei are destined for the pending applications. “We hope to meet all the demands for subventions that will be submitted until November 1 so that we don't accumulate debts for subventions”. said Petru Maleru.