Expert-Grup recommends drafting law on subsidization in agriculture

The subsidization measures used at present are not sufficiently tangible and do not make a clear difference between the allocations for business development, which should be granted at contests of projects, and other types of payments, consider authors of the study “Assessment of the efficiency and transparency of the use of the agriculture subsidization fund” that was launched by the think tank “Expert-Grup”, Info-Prim Neo reports. The study analyzes the subsidization measures used in 2006-2011, the producer’s access to subsidies, the institutional framework and the capacity of the Agency for Payments and Intervention in Agriculture to manage these subsidies. According to “Expert-Grup” director Valeriu Prohnitski, they say that the subsidies in Moldova are insufficient, but such issues as the appropriateness of the subsidization measures, how they are distributed and what impact they have on agriculture and rural development are not raised. Dumitru Budianski, one of the authors of the study, said the subsidization system should be improved, including its transparency. According to him, there is no clear connection between the agrifood sector development objectives and the subsidization measures. There are no specific measures aimed at supporting the small, family-type farms and young farmers. Dumitru Budeanski also said that about 80% of the subsidies in 2006-2011 were allocated to 20% of the producers that were mainly large farms. The subsidies were inappropriately distributed by areas. The volume of subsidies given to producers in Balti, Donduseni, Ocnita, Cantemir, and Rascani was 5.2 times larger than that given to the districts of Nisporeni, Calarasi, Straseni, Telenesti, and Ialoveni in the same period. Nothing is known about the impact of these subsidies. The experts recommend drafting a bill on subsidization in agricultures. They consider that in order to ensure the sustainability of the assistance provided to agricultural producers, minimum amounts should be planned in the GDP to form the agriculture sublimation fund. “Expert-Grup” says the task of assessing the impact of subsidies should be encrusted not to the Agency for Payments and Intervention in Agriculture, but to the Ministry of Agriculture and Food Industry. Deputy Minister of Agriculture and Food Industry Stefan Chitoroaga stated that a subsidization law would make the subsidization process more stable and the producers would know on what state assistance they can count during 3-5 years. The study was made with the support of the Good Governance Program of Soros Foundation Moldova.