The European Union adopted a policy on cotton growing, which would leave Bulgaria as an outsider in the trade in this agricultural commodity.

The conclusion was made after the unofficial announcement on October 8 of a European Commission (EC) document, quoted by Reuters.
The EC “offered only minor tweaks to cotton policy after a sweeping 2004 reform found fault at the EU’s highest court and was annulled,” Reuters said.

In September 2006, the European Court of Justice annulled the European Union (EU) 2004 cotton reform after an appeal by Spain, which said a key part of its new subsidy system was flawed and arbitrary.
The 2004 deal set out that for cotton, one of the world's most heavily subsidised crops, 65 per cent of EU payments would be decoupled, de-linking the amount of subsidy from that of production, and 35 percent converted into area-based payments.
Under a new reform proposal authored by EU Agriculture Commissioner Mariann Fischer Boel, that payment split would remain and only small changes would be proposed in other areas.

The maximum area for subsidised cotton-growing would remain unchanged at slightly more than 450 000 hectares, with Greece retaining “the lion’s share of that at 370 000 hectares”, Reuters said. Spain, the EU’s second largest producer, would receive 70 000 hectares.
Bulgaria and Portugal, also among the cotton producers, would be allocated very small growing areas, said the document, due to be published in early November.

The average yield of cotton production in Bulgaria has fluctuated widely as predominantly non-irrigated lands have been used for its production. According to data of the Ministry of Agriculture in 2001 the area growing cotton was 14 700 hectares. It was twice less in 2002 and just 2000 hectares in 2003. The following three years were not even subject to statistical measurements.

If EU agriculture ministers agree, the new cotton regime on subsidies would enter into force from January 2008, Reuters said. To promote European cotton, the EU would also create the so-called label of origin.

Greece and Spain, the only two major producers in the EU, produced around 1.45 million tons of raw cotton a year, Reuters said.
Bulgaria’s annual production meanwhile, has been dropping, which led to the country been allocated a volume quota of just over 9000 tons a year. The EU would not hear the country’s plea to be allowed to subsidise 40 000 tons of raw cotton.