"We think it is right to allow imports from Ukraine," Prime Minister Nikolay Denkov said Wednesday before the start of the regular government meeting.
He added that waiving the ban on imports from Ukraine will reduce the prices of basic food commodities, which will help low-income people.
According to the Prime Minister, the hot topic is the ban on grain imports from Ukraine to some European countries. There are two points of view - of the grain producers who want the ban to continue and accuse the government of "lack of any state support for the sector". The second point of view, Denkov said, is that of the government, which cares about ensuring lower food and feed prices, lower inflation, more budget receipts from imports and exports without pumping up inflation, and support for affected grain farmers. “Let us be clear - the resumption of imports from Ukraine will reduce the prices of basic foods, reduce inflation, which will help low-income people and increase the budget revenues from imports and exports,” the Prime Minister said.
He said that so far in 2023, the lost benefits to the budget from imports and exports amount to BGN 146 million, which could have been used for education, health, culture, or to support the agricultural sector. These funds would ensure the operation of refined oil and biodiesel plants that work for domestic and foreign markets.
“That is why we think it is right that imports from Ukraine should be resumed, as for this year about BGN 2 billion of subsidies and aids have been paid to farmers,” Denkov said, adding that he is surprised that "a sector that receives BGN 2 billion a year can claim that there is no state support whatsoever." Of this BGN 2 billion, BGN 890 million is from the State Fund Agriculture from the EU, BGN 388 million from the State Fund Agriculture from the state budget, which goes to support farmers, another BGN 390 million from the central budget and BGN 290 million from the budget of the Ministry of Agriculture and Food. The claim that the state does not care about the sector is false. It would be good if the sector also cares about the state when it formulates its demands, the Prime Minister said.
Denkov pointed out that since the beginning of September, the government has been calling on the European agricultural sector to limit mark-ups in the chain from the agricultural producer to the final consumer. A mechanism to limit these mark-ups as a temporary measure to support producers and consumers is being considered, the Prime Minister said. According to him, the European Commission will be asked for additional compensation for the losses of Bulgarian farmers, especially those of sunflower. “We will join the grain export corridors from Ukraine as a transit route through Bulgaria and Greek ports to export grain from the region to other regions that need it. We will ask for support from the EC for this activity. We will strengthen phytosanitary controls on imports to ensure the health of the citizens. In this way, we will show nationally responsible care for the whole society, not just for one sector in the country,” said Prime Minister Nikolay Denkov.
At a press conference later in the day, the Prime Minister said, "The Minister of Agriculture and Food Kiril Vatev is in a difficult situation because there is obviously a clash of interests, which was very clearly illustrated in his meetings, on the one hand with the sunflower producers and on the other hand with the oil producers, who had completely opposite demands. It is clear that there are different interests. It is very important that the decision that is taken considers the main priorities for the country and for the government.
Asked by journalists whether he was ready to meet grain growers, Denkov said he was ready to hold discussions with those who had real problems to seek a solution. "Where there are specific problems, like the problem with sunflower growers, a solution must be sought, rather than taking some general decisions that affect many other areas of the economy," the Prime Minister said.
/YV/
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