Romania Agriculture Ministry Says There Is No Money To Meet Farmers' Demands

Radulescu added that several normative acts meant to solve farmers' demands are currently drafted, but stressed, however, that money is the actual problem here.

Radulescu said one of farmers' demands targets subsidies for diesel oil used in agriculture and pointed out that his ministry has already sent to the Finance Ministry a draft decision whereby diesel oil excises will be cut by 1.16 lei (EUR1=RON4.0736) per liter.

During the meeting, unionists have also touched the issue of payments made by the country's paying agency for agriculture APIA, and Radulescu said 380,000 farmers have already received overdue subsidies for 2009.

"A total 850,000-900,000 farmers will have received overdue subsidies until April and our hope is to finalize all payments until the end of June," Radulescu said.

When asked to tell when farmers might get subsidies for milk, pork and poultry, Radulescu said farmers would get the money in the first half of April if the Finance Ministry earmarks funds in this respect.

Radulescu also said that famers' demand targeting the reduction of VAT down to 10% for food products falls in the attribution of the Finance Ministry, adding the subsidy of EUR15,000 for vegetable and fruit farmers and subsidies for irrigations cannot be granted.

Agrostar head Stefan Niculae said, following talks with ministry officials, that he was shocked to see a governing body totally incapable of solving farmers' problems, stressing this situation is only meant to ruin the Romanian agriculture sector.

Niculae added that farmers are bound to stage radical protests in Bucharest in May if government officials fail to earmark funds for the country's ailing agriculture.

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