European Commission approves €435 million aid program for Poland’s grain sector

UkrAgroConsult

The European Commission has approved a Polish program to support the wheat production sector worth about EUR 435.4 million (PLN 2 billion) in the context of Russia’s war against Ukraine.

According to the EC, the scheme was approved as part of the state aid in times of crisis and transition adopted by the Commission on March 9, 2023 to support measures in sectors that are key to accelerating the “green” transition and reducing fuel dependence.

It is noted that the new framework program partially amends and extends the temporary anti-crisis program adopted on March 23, 2022, to enable Member States to support the economy in the context of the current geopolitical crisis.

“Under the program, assistance will be provided in limited amounts in the form of direct grants. The aim of the measure is to support the liquidity needs of wheat producers affected by the current geopolitical crisis, in particular by massive grain imports from Ukraine, which has significantly affected the domestic wheat market in Poland,” the statement said.

The Commission found that the Polish mechanism meets the conditions set out in the Temporary Anti-Crisis Program. In particular, the assistance will not exceed €250 thousand per beneficiary and will be provided no later than December 31, 2023.

“The Commission has concluded that the scheme is necessary, appropriate and proportionate to address serious disturbances in the economy of the Member State…”, the statement said.

Tags: Poland, subsidies, grain, EU