OREANDA-NEWS. January 21, 2010. The process of granting subsidies described in the current edition of regulation is too bureaucratic, contains groundless restrictions and has discriminatory character in relation to some agricultural producers.

This was announced during the „round table” by the chairman of "UniAgroProtect" Alexander Slusari. During the round table Slusari noted that procedure of granting subsidies should be simple and the emphasis should be done on the subsidized object with the description of the documents confirming its expenditure. In particular, the farmers do not agree to the new condition to submit business plans and the procedure of selection of grantees on the competitive basis which is not very clear.

At the same time, the Union expresses his disagreement with introduction of the mandatory condition that the farmer should be the member of the profile producers’ association. According to Slusari, Moldavian farmers produce many types of crops and products and should unite into several associations.

As regards presentation of the business plans, the farmers consider it untimely as very often they require subsidies to compensate already born expenses. Slusari noted that farmers support provisions regarding the size of the subsidies’ fund and the direction of subsidizing in agriculture. In his turn, the vice-minister of agriculture Vasilii Bumacov noted that the draft Regulation on subsidizing agriculture was presented today in the profile parliamentary commission and will be considered by the parliament later.

According to the law on the state budget-2010, the size of the subsidies’ fund in agriculture amounts to 300 million leis. The means of the fund will be distributed for stimulation of lending producers (100 million leis), stimulation of the insurance risks in agriculture (15 million leis), subsidizing of investments in foundation of perennial plantations (30 million leis), production of vegetables in hothouses (18 million leis), acquisition of machinery and equipment (40 million leis), promotion of ecological agriculture (7 million leis), stimulation of investments in the stock-raising sector (15 million leis), acquisition of pedigree animals (15 million leis), development of warehouses and packaging shops (30 million leis).