Subsidies next year will be mainly given for purchasing equipment for processing and storing fruit and vegetables. “In 2013, we had good weather conditions and rich harvest, but the agricultural producers could not make a significant profit as they didn’t have storage conditions. Profit was made by the auxiliary industries and services,” Minister of Agriculture and Food Industry Vasile Bumacov stated for IPN.
The official said the fruitful year ensured economic growth and the country’s food security. The sanitary and phytosanitary sectors were reformed, this being a condition for initialing the Association Agreement with the EU, which envisions the creation of a Free Trade Area. There was created the Office of Vine and Wine and launched the reform of the winemaking and winegrowing sector.
“The implementation of modern technology and subsidization of agriculture this year helped recover the losses sustained in 2012, which was a dry year. The agricultural output was larger than in 2011, which was a very good agricultural year. We managed to convince our European partners to hold the first conference of the EaP agriculture ministers in Chisinau,” said the minister, enumerating the accomplishments of this year. He also mentioned the reduction in the VAT in agriculture from 20% to 8% and the exemption of imported agricultural machinery from VAT.
As to failures, Vasile Bumacov said the instruction of the agricultural center wasn’t initiated, but it remains a priority for next year. “We closed the negotiations with the European Investment Bank and in February will know if we receive money for building this center,” he added.
Speaking about 2014, Vasile Bumacov said the agriculture subsidization fund was raised to half a billion lei. There will be subsidized primarily the efficient sectors. The subsidies for purchasing storage, drying, sorting and packing equipment will be increased. The existing elevators consume a lot of energy and are monopolized. There will be subsidized the processing of potatoes, soybean and apples and the construction of refrigerating rooms.
The animal-breeding sector will be massively supported. European funds are expected in addition to the subsidies of half a billion lei.
