LDP: Agriculture sector policy has collapsed

The Liberal-Democrats (LDP) says the state's agriculture sector policy has seen "a complete collapse" with farmer protests over government subsidies. This collapse became obvious "when all of Vojvodina was brought to a standstill, while the government could not find a way out", said party leader Cedomir Jovanovic in a written statement given to the media on Thursday. LDP: Agriculture sector policy has collapsed Jovanovic further noted that the state borrowed almost EUR 1.4bn in the past five months, while it has been unable to reach agreement even on a minimal increase in the budget expenditure set aside for subsidies - "which amounts to only EUR 80mn". "This is the sabotaging of an economy sector that is not creating losses for the state and has good potential, while amounts of money two or three times that are being wasted on subsidies or guarantees for loans for the usual loss-generators - Srbijagas, Railways, Jat Airways," said the statement. Jovanovic believes that the country is not being blocked today "because of what the state is trying to present as the farmers' whim, but rather because Serbia is a non-functional country where everything, including the subsidy policy, rests on the principle of transiency and going back on deals and legal obligations". "Everyone knows that peasants, who are directly working the land, made no particular profit as agriculture produce prices grew last fall. Peasants sold their crop much earlier, when prices barely covered production costs," said Jovanovic - and concluded that this price discrepancy earned money "to other participants in the chain". Cedomir Jovanovic (FoNet, file)

LDP: Agriculture sector policy has collapsed

Jovanović further noted that the state borrowed almost EUR 1.4bn in the past five months, while it has been unable to reach agreement even on a minimal increase in the budget expenditure set aside for subsidies - "which amounts to only EUR 80mn".

"This is the sabotaging of an economy sector that is not creating losses for the state and has good potential, while amounts of money two or three times that are being wasted on subsidies or guarantees for loans for the usual loss-generators - Srbijagas, Railways, Jat Airways," said the statement.

Jovanović believes that the country is not being blocked today "because of what the state is trying to present as the farmers' whim, but rather because Serbia is a non-functional country where everything, including the subsidy policy, rests on the principle of transiency and going back on deals and legal obligations".

"Everyone knows that peasants, who are directly working the land, made no particular profit as agriculture produce prices grew last fall. Peasants sold their crop much earlier, when prices barely covered production costs," said Jovanović - and concluded that this price discrepancy earned money "to other participants in the chain".