October 2, 2013

Bulgarian grain producers will be paid their subsidies in full amount by end-January 2014, including EU subsidies.

A meeting of the National Association of Grain Producers, Prime Minister Plamen Oresharski and Agriculture Minister Dimitar Grekov has resulted in pledges of the said payment.

EU subsidies amount to BGN1.118 billion (US$773 million), while national complementary payments stand at around BGN60 million (US$41.5 million).

Angel Vukodinov, Chair of the National Association of Grain Producers, explained that the Association had given up its demands that grain producers be paid around BGN200 million (US$138 million) by end-2013 because of the capacity of the budget.

If the authorities detect irregularities, grain producers will receive their subsidies by end-April after an inspection.

Agriculture Minister Dimitar Grekov, Angel Vukodinov and Deputy Finance Minister Lyudmila Petkova signed an agreement on the rules for paying subsidies.

It was also agreed during the meeting that the excise duty rate on fuels for agricultural purposes would be reduced, for which a total of BGN84 million (US$58 million) will be earmarked, and a reverse VAT charging mechanism would be introduced for grain trade for a period of two years.

It was also agreed in the meeting that the authorities had to concentrate efforts on the creation of a law on branch organisations, with Grekov saying that it had to be discussed by end-2013.