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EU suspends fruit relief pay-outs

10:12 12/09/2014

The European Commission has suspended pay-outs of the aid promised to fruit and vegetable growers, after receiving “unrealistic” claims for subsidies, it said.

The €125 million in aid to European growers was meant as compensation for the Russian ban on imports from the EU. In Flanders, the crops most affected are pears, apples and tomatoes.

Growers were compensated for each hectare of produce withdrawn from the market, so that a glut of fruits and vegetables did not distort the market by forcing down prices overall. Pear growers were compensated €6,440 per hectare, with growers of apples and other produce receiving €5,474 per hectare.

The Commission has now ceased the pay-outs after what it calls exaggerated claims for subsidies. In the case of cauliflowers and cucumbers, the claims from one single member state – rumoured to be Poland – exceeded the entire annual production for the whole of the EU.

According to Flemish agriculture minister, Joke Schauvliege, the claims from Belgian growers are not under suspicion. About 13% of the apple harvest was taken off the market, and just under 10% of pears.

She criticised the Commission for not first communicating the decision to representatives of member states, giving rise to needless concern among growers. Applications made before 4 September will not be affected by the measure, she assured local farmers.

She also called for additional budgetary measures to be taken to tackle the export crisis. “It is important that the removal of produce from the market for the use of charities, for example, or for use in biomass installations, should form part of the new package, as well as other measures to aid exports, which are sorely needed.”

 

photo courtesy Toby Hudson/Wikimedia

Written by Alan Hope