The government decided on a five-point package of agricultural measures

(Photo: AM/István Fekete)

The head of the ministry stated that agricultural products, which are prohibited to be imported from Ukraine, are required to be fully notified, regardless of whether they come from any country. The government also made arrangements – he continued – for the Hungarian State Treasury to fulfill the payment of area and animal-based subsidies until May 31, 2024. According to István Nagy, it was also decided that the government will provide an additional HUF 45 billion for the Agrarian Széchenyi Card program until 2026. He also said that the government will raise the recoverable part of the tax paid annually for diesel fuel used in agriculture to 90 percent. This could mean another HUF one billion in additional annual support for the sector – added the minister, who also reported that, in addition to measures affecting imports and improving the economic situation of producers, support for investments will also be strengthened. “In the current situation, the role of government assistance in the sector is being valued, whether it is about making imports transparent, subsidies, loan financing or future developments,” said the minister.

According to the minister, the intervention is necessary because the market is characterized by severe oversupply and significantly low prices

The reason for this is that in the summer of 2022, the European Union decided that Ukraine can export agricultural products to the EU territory duty-free and without restrictions. “Ukrainian products appeared in huge quantities on the markets of EU member states, severely limiting the sales opportunities of these countries,” explained István Nagy, who said that “it is clear that Brussels and the European Commission have betrayed European farmers and are supporting Ukrainian oligarchs instead.”

MTI