This year's agricultural production will be lower than in 2008, due to the drought currently affecting Romania, Agriculture Minister Ilie Sarbu said in an interview for Business Standard.

Sarbu declined to provide precise figures, however, in order "not to influence the market," especially because the harvest time is near. Romania's irrigation system is very old, and this is to worsen the situation in case of a severe drought.

The ministry plans to carry out a study, with other authorities, for a project that could help producers in case of a drought. "This is a very complicated study that will probably take one year. Subsequently, the Parliament and all of us must commit thereto, and we must recognize that an extraordinary effort is in order. This is an investment worth millions of euro, which cannot be done in one year," he said.

Some two million hectares of fertile land of the total 9 million hectares available in Romania are unused at this time, the minister said. Other estimates, which he deemed exaggerated, mention surfaces of some 4 million hectares.

According to Sarbu, performances can be obtained in the field only if farmers merge their plots of land to form parcels of at least 2,000-3,000 hectares, so they can acquire machinery with European funds.

He added that a decision to first pay all subsidies for small farmers and leave major producers at the bottom of the subsidy list was a mistake, because they are the ones who ensure the production for the market.

Furthermore, this would promoted a better allocation of funds for agriculture. "In any case, non-reimbursable funds remain the solution for reviving Romania's agriculture. The crisis could help, if we know how to take advantage of this moment," he said.

Source: Business Standard