Daily news

 
Grain producers in Bulgaria on strike
09:00 Mon 28 May 2007 - Petar Kostadinov
 

Grain producers went on strike in most of Bulgaria on May 22, blocking main roads and demanding compensation from the Government for drought damage.

Unusually warm weather and lack of rain created problems for farmers some time before the recent rains, and the downfalls may not prove timely or adequate enough to solve the problem.

As the protest action began, close to 20 heavy vehicles blocked the central Bulgarian town of Veliko Turnovo.

A helicopter dropped flyers calling on people to “support Bulgarian agriculture,” Focus news agency reported from the city.  The entire city was blocked by protesting farmers.

The same day, farmers from the town of General Toshevo, near Varna on the Black Sea, held an hour-long protest. They were joined by farmers from the Dobrich region. Grain producers in Pleven region, northern Bulgaria, also held an hour-long protest. More than 200 heavy vehicles blocked the main Sofia-Pleven road, Focus reported. 

Grain producers from Rousse on the Danube and in the Plovdiv region also joined the protests.

Fifty heavy vehicles went out on the road in the Sliven and Yambol regions.

The farmers demanded that the Government immediately pay compensation to cover their losses caused by the drought in April and the first two and half weeks of May.

Most assessments say that the drought ruined Bulgaria#s grain production and a bread price crisis is on the horizon in autumn.

Some farmers say that losses might reach 500 million leva and the grain deficit could reach 500 000 tons.

In a letter to Prime Minister Sergei Stanishev, farmers demanded that the state declare an emergency situation because of the drought.

The rains that started on May 17, deluging parts of Sofia and nearby villages, would not help much with the crops because they may have come a little bit too late, the Institute of Agriculture in Karnobat told The Sofia Echo.

“Rain is always good for crops but the drought has had an effect and this year the results will be half of what they were last year,” the institute said.

Focus news agency said that farmers would continue protests until their demands were met.

“Grain producers have the right to protest and we have supported them,” Ivailo Todorov, chairperson of the board of the Bulgarian Association of Agricultural Producers (BAAP), told The Sofia Echo.

“It would be wrong to say that there is not a grain crisis at the moment in Bulgaria. Of course, we all hope that the rain will help the crops, especially in northern Bulgaria in Varna and Dobrich, where the drought has not been so damaging. One can be sure about something: this year#s harvest will produce half the results from last year.”

Todorov expected a result of a crop of 150 to 200 tons a decare, “which will not satisfy the domestic market”.

If, however, there is a grain crisis in the autumn, there are several possible ways for the Government to react, including to import grain, Todorov said.

“I do not think that grain prices in EU member states will be acceptable for Bulgaria and I think Ukraine will be the suitable option,” he said.

Bulgaria had obligations to fulfill futures deals such as a deal for 250 000 tons of grain exports, Todorov said.

“It is difficult today to say what exactly would happen in the autumn, but if grain maintains its current relatively high price of 260 to 300 leva a ton, there might be speculation by some bread producers.”

As to demands of grain producers, Todorov said there should be a more global view on Bulgaria’s agricultural sector.

“We have sent a letter to the Ministry of Agriculture and Forestry with nine demands that we think will ease the situation of Bulgarian farmers as a whole, not only the grain producers. We are not just asking for money in cash to be allocated by the state, but we are talking about preventative measures to avoid a similar situation in the future.”

One of BAAP’s suggestions is that the Government reimburse as soon as possible the excise duty on fuels to farmers, which is seven leva a litre of fuel.

According to the law, farmers are reimbursed at the end of the year. BAAP wants this to happen this month to ease the financial strain on farmers. 

“Another thing we want is that farmers get extensions on repaying their debts to the State Agriculture Fund.”

Usually farmers are asked to repay their loans by October. BAAP wants this deadline to be moved to next year.

“By meeting our demands, the state will give farmers the opportunity to prepare for the harvest in the summer and to buy seeds, fertilisers and maintain their equipment,” Todorov said.

On May 23 grain producers and BAAP achieved success. The Cabinet decided to reschedule grain producers’ credits to the SAF and  to compensate their losses but only after gathering the crop and handing in the necessary papers.

Agricultural and Forestry Minister Nihat Kabil told a news conference that the drought has destroyed the crop from 48 000 decares of wheat, but “it would be an exaggeration if we declare a state of emergency”.

 
Printer friendly version
 
 
 
 
Custom Search
Free Daily News Alerts
BNB Fixing 04 Dec 2008
EUR1.2623USD
EUR0.7936GBP
EUR1.95583BGN
USD1.54942BGN
GBP2.28819BGN
 
 
 
 
Download first page