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Agricultural sectors in Moldova and Romania face rising costs and protests
Agricultural sectors in Moldova and Romania are facing significant economic pressure due to rising production costs and regulatory challenges. In Moldova, farmers have organized protests, specifically in the Fălești region, demanding the maintenance of an 8% VAT rate on cereals and oilseeds, the extension of import licensing for grains, and the reimbursement of diesel excise duties. Rising diesel prices are a critical concern, as high fuel costs impact both production and the transport of crops to export points.
In Romania, the agricultural sector is navigating various support and crisis management measures. The European Commission has approved a 59 million lei aid scheme for pig farmers to offset increased costs for fuel and fertilizers, with individual grants capped at 50,000 euros. Additionally, Romanian authorities are preparing a mechanism, developed with the World Bank, to help farmers recover establishment costs for crops affected by drought, potentially starting in 2027.
Further developments in Romania include the potential start of subsidy advances via APIA as early as October 16, provided field inspections are completed. Meanwhile, livestock producers are dealing with losses from export restrictions on small ruminants due to disease, with vaccination campaigns expected to facilitate a return to trade. Drought also continues to impact fodder production, adding to the financial strain on farmers.
Entities
ANSVSA · Agency for Payments and Intervention in Agriculture · Association Forța Fermierilor · European Commission · Fălești · Moldova · World Bank