Ukraine's agrarian official says state to allocated $235 mln to support stagnant sectors

Ukrainian First Deputy Minister of Agrarian Policy and Food Maksym Martyniuk says the state support for Ukraine's agrarian sector in the amount of UAH 6.3 billion (US$235 million) in 2018 will ensure a long-term growth effect of the currently stagnant sectors.

"The total amount of state support will be distributed among livestock production, compensation for the cost of agricultural machinery, farming, and horticulture will be paid in a 4-1-1-0.3 proportion, respectively," Martyniuk said, noting that the ministry intends to monitor the effectiveness of the programs scrupulously, being ready to resort to prompt adjustment in case of their inefficiency, the ministry's press service reported.

The official noted that the program of support for horticulture and viticulture (UAH 300 million/US$11.2 million) envisages the creation of new gardens and vineyards with an area of more than 3,000 thousand hectares by the end of the year.

"UAH 1 billion [$37.4 million] in financial support to compensate for 25% of the cost of agricultural machinery will provide a 20% increase in Ukrainian agricultural machinery industry and modernization of farms," Martyniuk added.

Read alsoUkraine sees decline in cattle, pig livestockAccording to him, one of the projected results of the farm development program (almost UAH 1 billion) will be the increased number of farms and their merging into cooperatives by co-financing business projects (up to 70% of the equipment cost).

The official also says that the implementation of the livestock support program will lead to a rise in the number of cattle stock, improved genetics, better productivity, as well as growth in the supply of meat on the domestic market, and milk production growth.

He noted the peculiarities of the programs, that is, maximum liberalization, de-bureaucratization of procedures and minimization of officials' participation in the distribution process due to the involvement of financial institutions. "An important element in the implementation of most of our state support programs will be a close partnership with banks that act as recipients' auditors," Martyniuk summarized.

As UNIAN reported earlier, on February 7, the Cabinet of Ministers of Ukraine approved programs to support the agrarian sector in key areas within the State Budget for 2018. The support will total UAH 6.3 billion against UAH 5.5 billion in 2017.