VIDEO // Urgent measures to support farmers in Moldova: over 120 VAT refund requests submitted by agricultural producers to increase liquidity

The Agriculture and Food Industry Ministry (MAIA) has announced a string of urgent measures to support farmers, in the context of instability on international markets caused by the conflict in the Middle East. These measures consist of a set of financial and logistical instruments meant to ensure the optimal unfolding of the spring campaign and to reduce pressure on the liquidity of agricultural producers.

The main support mechanisms focus on compensating fuel costs and facilitating access to funds blocked in taxes, thus providing the financial oxygen needed for seasonal fieldwork.

For countering price increases, the authorities are relying on two essential levers: the refund of the excise duty on diesel fuel and the refund of VAT. As for the  value-added tax (VAT), the legislative framework has already been adjusted, in order to allow faster access to funds.

To date, more than 129 applications have been submitted by farmers, with the mechanism being simplified specifically to improve cash flow in agricultural holdings. This measure is considered vital, given that input prices (seeds, spare parts, services) have recorded significant fluctuations globally, according to MAIA.

Another priority of the Ministry is the energy security of farms. Data collected from the field indicate that producers already have more than 5,000 tons of diesel fuel, an amount that covers the needs for the first field interventions this spring.

The Ministry monitors fuel stocks nationwide on a daily basis, noting an increase in imports over the last 48 hours. This positive trend helps to ease concerns about possible supply disruptions, ensuring the continuity of sowing and soil preparation works.

In addition to the fuel crisis, the agricultural sector is also facing an increase in fertilizers’ prices. In this respect, Minister Ludmila Catlabuga said that the government team was urgently examining more technical and financial options to reduce the impact of high fertilizers’ costs on farmers’ budgets.

The Agriculture Ministry assures that it will remain in constant dialogue with industry associations, in order to adjust state policies to market realities, so that the country’s food security is not affected by the external geopolitical situation.