OREANDA-NEWS. October 10, 2011. Several associations of Moldovan agricultural producers have warned the authorities that the earmarked state subsidies might not be sufficient and hundreds of farmers run the risk of going bankrupt. For its part, the Agriculture and Food Ministry said that the agricultural producers who applied for subsidies in 2011 would receive them.

The head of the UniAgroProtect agricultural producers' association told a news conference that the government intends to supplement the 2011 subventions' fund by another 150 million lei. He noted that the debts for soil fertilizers stand at 67 million lei, whereas the estimated sum for the requested subsidies amounts to 120 million lei. At present, the process of receiving applications is suspended. Given this fact, the farmers fear that they might not recoup the investments they had made and thus go bankrupt.

According to the source, the farmers are also discontent with the information provided by the Finance Ministry, which announced that only 250 million lei would be allotted in 2012 from the state budget to the agricultural subsidies fund. "We do not want state allowances, but investments in the agricultural sector, in order to be competitive on the regional markets," a representative of the agricultural producers said. At the same time, the representatives of the agricultural producers' associations warned the authorities that in case they do not receive an answer to their request within a two-week term, they will summon the joint council of the agricultural associations in order to adopt a decision. Moreover, they conditioned their participation in a national agricultural exhibition.

Agriculture and Food Minister Vasile Bumacov said that the process of receiving applications had been suspended because of financial shortages, including following a recommendation of the International Monetary Fund. "The reason is that the subsidies fund for 2011, standing at 250 million lei, had been entirely used to pay the 2009-2010 debts to farmers. Otherwise, we would have had enough money for all the applicants," the minister said.

At the same time, Bumacov said that about 200 million lei, including 50 million lei for anti-hail measures, is to be additionally allotted in 2011. He gave assurances that all the applications submitted by the farmers would be considered and that appropriate solutions to this problem would be found. The sum amounting to 250 million lei planned for the agricultural subsidies for 2012 is to be re-negotiated.