Bulgaria’s Cabinet decided to allocate 735 million leva to compensate grain producers in the country.

The Cabinet will compensate the farmers for the harvest losses they suffered due to the drought in the beginning of 2007, mediapool.bg reported.

Re-arrangements in the budget of the Agriculture and Food Ministry will provide the sum.

Most of the money, five million leva, will be transferred from the tobacco fund budget to the National Agriculture Fund. The rest of the money is provided by the agriculture fund itself.

The sum would be divided between wheat and barley producers under the European Commission regulations, mediapool.bg said.