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The Ministry of Agriculture announced on Wednesday that it had managed to secure HUF 6 billion (EUR 15.9 million) in compensation from Brussels for domestic maize producers due to Ukrainian grain imports.
A total of HUF 5.9 billion (EUR 15.6 million) in compensation has been paid out until the end of 2023, to mitigate the losses Hungarian farmers suffered as a result of the severe disruption of the grain market caused by the war and the sanctions policy. In response to pressure from the Member States concerned, including Hungary, the European Commission has granted Hungary EUR 15.9 million for this purpose, the Ministry of Agriculture announced.
In May of last year, the European Union temporarily allowed five Member States – Bulgaria, Hungary, Poland, Romania, and Slovakia – to ban imports of wheat, maize, rapeseed, and sunflower from Ukraine to protect local farmers. However, the ban on imports of Ukrainian cereals expired on September 15, and the European Commission decided not to extend it, because it considered that the measures taken since May had eliminated market distortions in the five Member States. In response, Poland, Hungary, and Slovakia announced their own restrictions on Ukrainian grain imports.
Besides maintaining the import ban, Hungary considered it important to compensate farmers who had suffered damage.
The European Commission, recognizing that unrestricted imports of Ukrainian produce had caused serious losses to farmers in the Member States concerned, allowed them to be partially compensated,”
the ministry said.
They added that the conditions for receiving this amount, being symbolic in relation to the extent of the damage, have been tailored by the ministry to provide targeted and meaningful assistance to farmers who need it. Under the conditions worked out in cooperation with the Ministry of Agriculture, maize growers entitled to compensation could submit their applications to the Hungarian State Treasury October 1-15, 2023.
The treasury has paid a total of HUF 5.9 billion in compensation aid to farmers until the end of 2023.
The aid was intended to partially alleviate losses incurred in the sale of the 2022 crop, with a payment of HUF 81,000 (EUR 214) per hectare for 73,000 hectares of maize. This was aimed to help the smaller farmers most in need. However, this payment only partially mitigated the negative impact of the previously unhindered Ukrainian imports.
Via MTI, Featured image: Pixabay