Parliament backs new producer body framework to unlock EU agricultural funds
Moldova's parliament on Wednesday approved in the first reading a government bill overhauling agricultural cooperation, replacing informal producer groups with EU-aligned producer organisations to boost competitiveness and prepare farmers for the Common Agricultural Policy.
Aligning with EU agricultural market standards
The legislation establishes the legal basis for producer organisations, associations of producer organisations, and interbranch organisations, modernising how farmers, food processors, and distributors cooperate across the supply chain.
“The project aims to establish the necessary institutional and legal framework for the creation, recognition, and operation of producer organisations, their associations, and interbranch organisations, to strengthen cooperation among farmers, increase the competitiveness of the agri-food sector, and align Moldova with the EU acquis,” said State Secretary at the Ministry of Agriculture and Food Industry Andrian Digolean.
Digolean told lawmakers that low participation rates under the existing framework made urgent reform necessary to prepare domestic agribusinesses for European integration.
“Adopting this harmonised regulatory framework will allow agricultural producers to apply the cooperation mechanisms provided by EU legislation and adapt early to the requirements of the Common Agricultural Policy,” Digolean said.
State financial backing and anti-fraud safeguards
The bill also introduces operational funds co-financed by member contributions and the National Fund for Agriculture and Rural Development. State start-up assistance will be capped at €104,000 (approx. 2 million MDL) per year for newly established organisations, subject to annual state budget limits, said Dorian Istrati, deputy chair of the parliamentary committee on economy, budget, and finance.
To protect public spending, the law delineates oversight responsibilities between the Ministry of Agriculture and the Agriculture Intervention and Payment Agency (AIPA). The agency will gain explicit legal authority to suspend subsidy disbursements and claw back improperly allocated funds.
The legislation entails no additional costs for the state budget beyond existing subsidy allocations, with operational costs borne by member contributions. The draft law passed its initial reading with 61 votes in the 101-seat parliament and requires a final second-reading vote before taking effect.
Translation by Iurie Tataru
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