Sugar beet and tobacco producers to receive additional subsidies

Sugar beet and tobacco producers will receive subventions in a second stage, although the Regulation on the use of agricultural subsidisation fund doesn’t provide for subsidies in case of low productivity. The measure was requested from the Government by the Ministry of Agriculture and Food Industry due to the consequences of this summer’s drought. In the case of sugar beet cultivated on a total area of 31,900 ha, the average yield constituted about 20,000 kg/ha. The growers of tobacco were also affected, the Ministry affirms. Thus, beet farmers will receive subsidies of 15 lei per each tonne delivered to processors, while tobacco producers will be paid additional 350 lei for each tonne of harvested tobacco, regardless of productivity. At the same time the amount of money provided for the compensation of VAT for purchasing farm equipment will be decreased down to 15 million lei, given the fact that until the end of the year the funds designated for this purpose will not be used. The money will be used to subsidise farming.