The European Commission (EC) approved a Polish initiative valued at approximately EUR 53.6 million (PLN 240 million) on Friday, aimed at bolstering the corn production sector. This move came in response to the influx of Ukrainian grain into Poland, a consequence of disrupted export routes following the Russian invasion. The surplus grain from Ukraine led to a decline in prices, causing distress among farmers and wholesale sellers struggling to sell their produce.
Acknowledging the severe economic impact on Poland’s agricultural industry, the EC determined that the Polish program adhered to EU regulations and was a necessary response to address the crisis. The initiative was deemed “necessary, appropriate, and proportionate” to counter the challenges faced by a member state’s economy in the wake of the geopolitical crisis.
The primary objective of the program is to provide support to eligible beneficiaries in the corn production sector who are at risk of financial instability due to the market turbulence caused by the ongoing crisis. Under this initiative, assistance will be provided in the form of direct subsidies to small and medium-sized enterprises operating within the corn production sector, aiming to alleviate their financial concerns and stabilize the agricultural market in Poland.