The measure is of a temporary nature and is aimed at reducing the impact of the increase in the price of diesel fuel on the cost of production of agricultural producers. It is due to changes in the energy market and the consequences of the war in the Middle East region.
The procedure for providing assistance is stipulated in a draft decree developed by the Ministry of Agriculture and Food Industry (MAFIE) in order to preserve the profitability of agricultural production.
The explanations to the project note that, according to experts, the cost of raw materials depends on diesel fuel prices by 40%. This situation creates a chain reaction of increasing prices for agro-food products, especially for socially important goods. This non-competitiveness affects not only the income and sustainability of local farmers, but also has consequences for the state budget. In the medium term, increased dependence on imports may lead to lower tax revenues for the agricultural sector and increased spending on subsidies or other support mechanisms, the authors note.
The ceiling will be 200 thousand lei
At the same time, the establishment of the maximum compensation ceiling of 200 thousand lei per recipient is conditioned by the need for an efficient and fair use of financial resources.
The document prescribes the procedure of granting support and the list of documents to be attached to the application. In particular, the volumes of purchased diesel fuel should be confirmed by a tax invoice and should not exceed the average quarterly consumption norms. Farmers’ eligibility conditions will also be taken into account.
To implement the measure, 108 million lei will be allocated from the government’s intervention fund (out of 280 million lei approved for the current year). The financial means will be distributed through the Agency for Interventions and Payments in Agriculture.
