14:10 17.05.2017

Rada agrarian committee to ask PM to refund loss to gardeners due to spring frosts

KYIV. May 17 (Interfax-Ukraine) – The parliamentary committee for agricultural policy and land relations will ask the Ukrainian prime minister to refund the loss seen by agricultural companies from the loss of fruit and berries crops due to spring frosts.

"The agrarian committee has decided to ask the Ukrainian prime minister to provide funds to compensate the expenses of farms, households, family farms and businessmen. We understand that we cannot compensate all the loss we have today in the sector, but the state is obliged to refund the expenses of the farms," MP Mykola Liushniak said at a press conference at Interfax-Ukraine.

He said that in some regions UAH 30-40 million should be returned.

"The sum foreseen in the budget [UAH 75 million of subsidies to gardeners and winegrowers] is not enough. We should find the funds for financing. If we do not find them today we would loss the sector for the next three or four years," Liushniak said.

In addition, the lawmaker believes that the task for the next 5-10 years is drawing up a mechanism for insuring crops and gardens by farms. The document will be designed jointly with the Ukrsadprom association.

Chairman of the Ukrsadprom Association Dmytro Kroshka said insurance products for horticulture are almost unavailable, due to the fact that insurance companies do not have statistics on the sector. They cannot calculate the production cost of fruit and berries.

"Today there is the expense compensation program linked to insurance. This is the state-sustained program, but the list of crops that could be insured includes only grain crops," Kroshka said.

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