Assistance for farmers
The Government in Bucharest has promised to help farmers affected by instability on the grain market
Bogdan Matei, 21.04.2023, 14:00
Many
pundits are already talking about a so-called geopolitics of grain developing
on Ukraine’s western borders. As early as May 2022, the EU had suspended
customs duties on all products imported from Ukraine. This country’s neighbors
reported a massive flow of corn, wheat or sunflower. Granaries were overstocked
and local prices plummeted, which sparked farmers’ anger. Romania is the only
neighbor of Ukraine to allow grain imports from this country. Poland and
Slovakia, two otherwise staunch supporters of Kyiv, have banned Ukrainian grain
imports to protect local farmers. According to Radio Romania’s correspondent in
Sofia, the main reason is that, despite the existence of so-called solidarity
corridors, in the last year Ukraine had difficulties exporting significant
volumes of foodstuffs, which disrupted production and trade chains.
A
traditionally Russian-friendly country and currently on bitter terms with
Ukraine, Hungary too banned the imports of honey and certain meats from Ukraine
until June 30. Romanian farmers, who in turn have protested the current
situation, claim their losses exceed €200 million due to the imports of
cut-rate grain from neighboring Ukraine, which sells at approximately €100 per
ton. Facing the growing discontentment of its citizens but also wary of angering
Brussels, the Romanian government promises to compensate farmers. Officials
have announced a €10-milllion package addressing affected farmers. This adds to
the €10 million disbursed so far by the European Commission, raising total
assistance to €20 million, designed to offset expenses related to stockpiling last
year’s yield. Farmers can file the necessary documents at the Agriculture
Payments and Intervention Agency, 15 days after the decision is published in
the Official Gazette. Asked if lawmakers plan on temporarily banning Ukrainian
grain imports, government spokesman Dan Cărbunarusaid
Romania has chosen to comply with European legislation, which places it in a
position to bargain. Meanwhile, the European Commission has announced an
additional assistance package for farmers worth €100 million, which will be
divided among the five affected countries. (VP)
