Romania’s Agriculture To Collapse Unless Agric Min Budget Gets Extra Money

"If this budget set at 1.4% of the GDP is maintained, 70% of the country's agricultural exploitations will be closed and over 10,000 people left jobless," Niculae said Friday after talks with Agriculture Minister Mihail Dumitru.

Niculae asked for an increase of the ministry's budget from 1.4% of the GDP to 4%, namely from RON9.87 billion to RON36 billion.

Niculae also complained there is no draft law to replace agriculture subsidies that were eliminated this year, with other state aid means, adding people working in the agriculture sector will begin protests starting next week, displeased with the ministry's budget.

"A calendar of protests will be established Tuesday," Niculae said.

Niculae highlighted fiscal evasion in the agriculture sector rises to EUR1.5 billion mainly because of food imports.

Niculae said he is displeased with the fact banks are still skeptical in granting loans to the agriculture sector.

"We also lack the support of the banking system. I do not agree with loan-type subsidies because, with the crisis, farmers cannot pay interest to prop up the banking system," Niculae said.

Niculae said the transfer of the agricultural consultancy department to local authorities was a bad idea, adding Agrostar will set up its own project to create agricultural departments.

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