State support for Belarus agriculture to top $570 mln in 2012
MINSK. Nov 23 (Interfax) - State support for the Belarusian agro-industrial complex will total around 5 trillion Belarusian rubles ($573 million at the current exchange rate) of the state budget in 2012, Belarusian Deputy Prime Minister Sergei Ivanov told Interfax.
"There will be state support - around 5 trillion Belarusian rubles in 2012, the same as in 2011. For rural areas that is not a very big amount - around 4% of the budget," he said.
The amount of state support "will not decrease, but it will be directed toward specific state programs," he said. In particular, the state will allocate funds for breeding, seed production and science.
"So this is a 'green basket' [measures to improve the industry and not to maintain producer prices]. The government must maintain a level of veterinary services, amelioration - these activities will be financed partially with government subsidies," Ivanov said.
"All government programs influencing the level of agricultural production will be subsidized. But everything that farmers contribute to constructing farms, purchasing agricultural technology, fertilizers, fuels and lubricants, will be paid for with loan resources, working capital," he said.
At the same time, part of the interest on loans independently taken out by farmers will be compensated "so that the loan period is not so difficult that farmers will adjust their production," Ivanov said.
Commenting on state support for the agro-industrial sector in Customs Union countries, Ivanov said that "we regulate the amount of state support in the framework of the Customs Union. We unify aid for agriculture, and all of that is agreed upon."
"The Russians are presenting some sort of claim to us: 'you help agricultural producers, lower their costs of production, then sell cheap products to Russia.' That is not true. Russia currently offers enormous aid to its farmers. In that relation, we adjusted [the amount of state support]," Ivanov said.
The official exchange rate on November 23 was 8,720 Belarusian rubles/$1.