Agriculture Ministry prepares bill on groups of producers

The Ministry of Agriculture and Food Industry is drafting a bill concerning the groups of producers. One of the bill authors Nicolae Ciubuc, deputy head of the Agency for Payments and Intervention in Agriculture, said the groups of producers represent an instrument used in the European countries to unite five and more agricultural producers, Info-Prim Neo reports. The union allows reducing the costs for purchasing fuel, fertilizers and other things needed in the production process and for organizing the sale without intermediaries. In order to stimulate the creation of groups of producers, the authorities in the European countries provide a series of concessions. They cover 5% or even 10% of the cost of the products sold through the groups of producers and increase the subsidies granted under general conditions. In Moldova, a subsidy of 30% of the costs incurred is given to those who build a packing house or install a refrigerator for keeping agricultural products. The subsidy for the groups of producers is 50-60% or even 70%. Another stimulation measure is the provision of preferential loans to groups of producers, said Nicolae Ciubuc. The bill was discussed with experts from a number of European counties and is now examined by ministries and other institutions. It will be submitted to the Government for approval in a month or two.