As the war between Russia and Ukraine escalates, the European Union has reportedly offered a funding package worth 1.5 billion euros for farmers in the war hit country. Additionally, the EU is also freeing up uncultivated land for crops as they move forward to shore up food security post the invasion.
Reportedly, there has been a significant rise in prices as most of the shipments from Ukraine, which has been a leading chicken and grain exporter, is being halted.
As the EU releases its very first agricultural crisis funds, the bloc has decided to offer a funding worth 500 million euros for the member states to distribute amongst farmers who have been most affected by increased fertilizer and energy prices.
The European Union nations can thereafter top up those funds with their personal resources to reach the total of 1.5 billion euro.
Valdis Dombrovskis, Executive Vice President at European Commission, stated that while the European Union doesn’t face the risk of food security itself, its aim is to still cater to the issue of food affordability and take measures to make food supply and agricultural chains more sustainable and resilient to be ready for the upcoming crisis.
As per credible sources, other steps will set free around 4 million hectares of land for cultivation in 2022. While the land might not be highly productive, it will at least provide flexibility to farmers.
Furthermore, restrictions will also be relaxed temporarily on the import of animal feed to allow nations under the European Union to plug the disparity created by the Ukraine shipments, for instance, starting imports from South America.
For the uninitiated, it is also in discussion at the commission to bring down the value added tax to zero to reduce the consumer costs.
Source Credits:- https://www.bloombergquint.com/business/eu-proposes-1-5-billion-euro-package-to-shore-up-food-security