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Farmers in Serbia face reduced subsidy offer amid internal disputes with government

Farmers from five agricultural associations in Serbia met with Minister Aleksandar Martinović to discuss last year’s promised subsidy of 35,000 dinars per hectare, only to be offered a reduced amount of 28,000 dinars. Miroslav Matković, President of the Subotica Agricultural Producers Association, reported that the government proposed a second part of the subsidy for certified seeds at 10,000 dinars per hectare, down from the previously promised 17,000.

The state will provide this seed subsidy without requiring proof of purchase, meaning that all farmers receiving a direct subsidy of 18,000 dinars per hectare would additionally receive 10,000 dinars, but only for this year. For next year, the subsidy for seeds could be up to 17,000 dinars based on purchase invoices, allowing for potential adjustments based on seed prices.

Matković expressed concerns about a lack of progress on the demand for excise-free fuel and indicated that discussions about increasing the fuel refund amount, currently set at 50 dinars per liter, are still stalled.

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Government representatives assured that if farmers accept the new offer, a decree would be enacted promptly and payments would be issued within 30 days.

The meeting also highlighted a rift among farmer associations, split into two factions. One group is demanding fulfillment of previous promises made by the former Prime Minister, while another group, which had signed a more favorable agreement with the Ministry of Agriculture, has been sidelined in these negotiations. Nedeljko Savić, President of the “Stig” association, noted their distrust in the government’s ability to honor a new, less favorable agreement.

Both groups had anticipated a public call for subsidies for certified seeds, as previously announced by Prime Minister Miloš Vučević, which is expected to occur this month.

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