Agriculture urgently needs government assistance, or the whole economy will suffer because of the disaster in the agricultural sector - WatchDog.md
In their analysis, WatchDog.md experts noted that Moldovan farmers protested from June 7 to 26, demanding more support from the government in the face of the crisis they are dealing with, and warned that they will go to streets again if they are not heard and their demands are not met. The data show that the situation of Moldovan agrarians is indeed precarious: last year's drought severely affected many crops (60-70% of sunflower, 80-90% of corn), fuel prices have skyrocketed due to the Russian invasion of Ukraine, the anti-inflationary policies of the National Bank of Moldova have made loans more expensive (some rates have increased by more than 4 percentage points), and the excess of cheap grain from Ukraine on the regional market has led to a collapse in the prices of grain products - wheat, rape and barley are sold below cost. Many farmers, especially small and medium-sized ones, cannot cover their expenses and pay their employees. The risk of bankruptcy is real, and the collapse of agricultural enterprises will lead to job losses and increased emigration. WatchDog.md experts say that under these conditions, the agrarians' demands are justified and the government should as soon as possible repay them the 476 million lei in arrears of last year's subsidies, compensate them for the difference in production costs and convince creditors to postpone payments. Experts believe that in addition to these measures, systemic efforts are needed, such as the reform of the Agency for Intervention and Payments in Agriculture (AIPA) and the creation of many specialized units to implement financing, as well as the digitalization of the process of applying for subsidies. It is also recommended to attract EU funds for agriculture and rural development, including for replenishing the state budget. WatchDog.md analysts believe that the alternative will be a deep crisis in agriculture, which will pass down the chain into related spheres such as trade, processing industry, transportation of goods and logistics. "If the authorities do not prevent this catastrophe, Moldova's entire economy will suffer and the country will become very vulnerable in terms of food security," WatchDog.md experts believe. //28.07.2023 - InfoMarket.
