State to increase agricultural subsidies

The agriculture subsidization fund will be augmented by 150 million lei after the state budget is amended, Prime Minister Vlad Filat announced after a meeting with agricultural producers on Tuesday. This is only half of the sum demanded by the farmers. ”It wasn’t an easy discussion, but we succeeded in leaving the emotions aside. We discussed the present situation and the possibilities of the state,” said the Premier, quoted by Info-Prim Neo. Vlad Filat stated that the 150 million lei and the other sums earmarked in the 2011 state budget will be distributed to the farmers by the end of this year. “We spoke about the prospects for 2012. We are yet to agree a figure, but it will surely be a sum that will enable the farmers to develop, not only to survive. I think the aspects we debated will help us have good cooperation relations in the future,” he said. He reiterated that the excise duties on wine will be lifted next year so as to stimulate winemakers to sell their products on the home market as well. The VAT on sugar next year will remain at the level of 8%. Last week, a number of agricultural associations asked the Government to increase the agricultural subsidies as the prices of diesel fuel and fertilizers rose, while of vegetables fell. The agricultural producers demanded that the agriculture subsidization fund be augmented by minimum 300 million lei. After the meeting, Minister of Agriculture Vasile Bumacov informed that 1 160 tonnes of grain have been harvested so far, including 833,000 tonnes of wheat. The harvest is better than last year both from quantitative and qualitative viewpoints. The sugar beet is gathered with a two-week delay and the losses are expected to amount to 20% owing to drought.