Romania To Grant Subsidies For Agricultural, Forestry Products Processing Operations

The decision was adopted following the steps taken by the Management Authority for National Rural Development Program (PNDR) starting October 22, 2009, when Romania notified the European Commission regarding subsidies for processing agricultural and forest products.

The total value of the state aid is of EUR200 million and the number of state aid beneficiaries is estimated at 550 companies and small companies.

„A potential beneficiary could receive state aid within the program if the proposed investment project aims to set up a new processing unit, extend a processing unit already unfolding processing operations, diversify production to obtain new products or radically change the production process of a unit,” the ministry said.

As of January 1, 2010, Romania may no longer grant direct subsidies for the production of pork and poultry meat, eggs, sugar beet, rice, flax, hemp, soy or tobacco, as well as subsidies for diesel oil used at farming works and electricity used in irrigations.