Moldovan PM says government considerably increases subsidization fund in agriculture

Chisinau, 30 March /MOLDPRES/ - The subsidization fund in agriculture in 2022 will be increased up to 1.75 billion lei, against 1.1 billion lei in 2021. Prime Minister Natalia Gavrilita made statements to this effect at a news conference today, the government’s communication and protocol department has reported.   

According to Gavrilita, the cabinet has changed the formula of providing assistance on behalf of state to producers. While earlier, the money reached mostly big producers, starting from this year, there will be four distinct categories of beneficiaries: big producers, medium-sized producers, small- and micro-producers. ‘’For the government, all farmers are important and not only the holders of thousands of hectares need support, but also the small producers or the ones with family businesses and who also face difficulties, in the context of the increase in prices triggered by the war,’’ Natalia Gavrilita said.    

The PM informed that the area of intervention of the subsidies had been extended as well. They subsidies will be able to compensate:

 * 30 per cent of the value of excise on diesel used in agriculture;   

 * up to 200,000 lei of the rate of interest on the loans borrowed for completing the current assets and additionally, up to 150,000 lei for the loans borrowed for investment projects. The measure’s goal is to supply the current assets.   

 * up to 1.5 million lei for the construction of installations for producing renewable energy.

For the first time ever, the subsidization fund will back the foundation of multiannual plantations only with varieties recorded in the EU’s registers of varieties of agricultural plants. Another novelty is that the government will subsidize the practices of energy efficiency through the compensation of 50 per cent of the cost of quality leguminous seeds, but not more than 2,000 lei per one hectare. The education institutions and the research and innovation ones from the agricultural sector, as well as  the associations of users of water for irrigation will benefit from subsidies too.   

„We will encourage the investments made by young people, women and migrants who returned to Moldova, through the increase of the quantum of subsidy up to 20 per cent for investments in the animal husbandry sector, cultivation and growing of fruits and vegetables on protected land and foundation of multiannual plantations.’’ Natalia Gavrilita noted.  

The prime minister said that, in the last two weeks, she had had meetings with more groups of farmers and the situation in the field is extremely complicated, because of the increase in prices for fuels, especially for diesel, interruption of the ways of export and import through Ukraine, increase in prices for all the range of services and products necessary for the foundation of agricultural plantations, beginning with equipment, pieces and up to fertilizers and seed material, all unprecedented in the history of Moldova.   

Given the difficult situation triggered by the war in Ukraine, the PM called on the farmers to fully get involved in their activity.  

„The government increases the help and the subsidies; we are in permanent dialogue with the development partners, so as to boost projects on agricultural business in Moldova. We enjoy EU’s support for the promotion of exports and a greater openness for changing the ways of trade without additional taxes; yet, all these measures are additional elements of the success. The principal element of success in this agricultural year is the farmers’ will and determination to work and win the obstacles they face day by day,’’ Natalia Gavrilita also said.  

The draft of the concerned government decision will be published on 1 April and the decision is to be approved at the next cabinet meeting.

Photo: Government