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GOVT IN FAVOUR OF SUBSTANTIAL RISE IN AGRICULTURAL SUBSIDIES

ZAGREB, April 16 (Hina) - The Croatian Government has drafted and act on increasing considerably the subsidies in agriculture. The Government has made this decision in view of the fact that Croatia will soon join the World Trade Organisation (WTO) when the protection through customs tariffs should be cut by 30 percent for the domestic agricultural produce and foodstuffs. Croatian farmers and food manufactures then must face very strong competition on the market. The Government has proposed rises in incentives for almost all arable crops, seed, rearing of pigs and calves. Subsidies for the tobacco growing and honey will be increased as well. The Government has also suggested cuts in some subsidies for grape growing on some islands and Dalmatian coastal areas and for lavender. According to the draft act, which the Government has launched into a parliamentary procedure, the state will have
ZAGREB, April 16 (Hina) - The Croatian Government has drafted and act on increasing considerably the subsidies in agriculture. The Government has made this decision in view of the fact that Croatia will soon join the World Trade Organisation (WTO) when the protection through customs tariffs should be cut by 30 percent for the domestic agricultural produce and foodstuffs. Croatian farmers and food manufactures then must face very strong competition on the market. The Government has proposed rises in incentives for almost all arable crops, seed, rearing of pigs and calves. Subsidies for the tobacco growing and honey will be increased as well. The Government has also suggested cuts in some subsidies for grape growing on some islands and Dalmatian coastal areas and for lavender. According to the draft act, which the Government has launched into a parliamentary procedure, the state will have to ensure about 1.7 billion kuna (approximately 0.2 billion US dollars) for such subsidies. It is now up to the National Sabor to define a final list and amounts of incentives for agricultural produce. (hina) ms

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