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Minister of Agriculture announces financial compensations for farmers affected by drought
The Executive is to discuss, in view 'to approve' it, next week, a Government Decision (OUG) targeting financial compensations to be granted to farmers who are affected by drought, announced, on Tuesday, Minister of Agriculture Daniel Constantin.
'We are preoccupied that those in SMEs category to receive financial compensations for the loss of income this year compared to the average of the last three years, in amount of 80 percent for those who are insured and by 50 percent for not the insured ones. The same OUG is to set the aid amount which is to be granted - the so-called minimis support - one time only, for exploitations that do not fit into the above mentioned category, namely those up to the SMEs zone, this support targeting an aid of 7,500 euros per exploitation', Constantin stressed.
He added that, in the next period, there is no great concern about an increase in food prices due to the drought.
'There are some producers who said they will increase and, if we look at prices of agricultural products on the international markets, as well, maybe that would be justified. Now, it remains to be seen to what extent the market may allow this increase. Consumers do not believe they can afford higher prices at the moment. As such, the one who sets a price will think if it would not be better to shrink his/her profit, or even to go without it, at the cost of production, and to sell the product, than to sit with it at a loss', explained the Minister of Agriculture.
On the other hand, Daniel Constantin said he did not think the production would reach the last year's level as a share in the GDP, but pointed out that agriculture is still 'a very important sector in the general budget'.