Farmers seek 10% compensation, government offers only 6%

TIRANA, Oct.2- The compensation scheme offered by the administration to subsidize six percent of their products has left farmers unsatisfied. The measure is due to be implemented starting in 2008. Farmers have asked for a subsidy of ten percent. Gathered at the Albanian Agro-business Council, farmers brought examples of other countries being more generous towards their farm producers. A representative of the Milk Association explained that Italy and Greece, Albania ‘s major trading partners compensate farmers at a level of 16 percent. The Council head, Enver Ferizaj, supported the requests saying that the Council will lobby the Ministry of Finance and the Ministry of Agriculture to reconsider the measure. Albania numbers 380.000 farms identified by the state institutions but a very small number of them have real access to the market. Mostly, buyers from these farms are small traders who do not pay Value Added Tax. This is the second time that the Albanian government has proposed a subsidy scheme. The first proposal failed due to the inability of farmers to issue regular sale receipts. This time the government is preparing identification numbers for all farmers that will be put on sales records. Traders are expected to benefit too. If the farmer will get back 6 lek out every 100 lek sales, all other chain links in the market can report this as an expense and will receive a tax deduction. According to Finance Minister Bode, the start of this scheme will bring a total of 5 billion leks to the budgets of farmers, starting in January 2008.