Brussels, 24/07/2002 (Agence Europe) - In order to determine the production of cotton to be taken into account in Greece for calculating the minimum price and the aid for the current marketing year (2001/02), the Commission has decided to define the concept of "actual production" of unginned cotton as cotton actually produced on land authorised under the cotton aid scheme. Actual Greek cotton production in 2001/02 and 2002/03 (soon to begin) has been fixed at 1 246 838 tonnes, resulting in expenditure of EUR 571 million and a minimum price of EUR 593 a tonne.
The Community aid scheme for cotton production is based on a minimum price for the cotton grower, paid by the processor who receives in return aid allowing him to sell the ginned cotton at the world market price. In May 2001, the Council amended this scheme with effect from the 2001/02 marketing year. The primary aim of the new rules is to prevent such a large volume of cotton being placed on the market that it would have an adverse effect on the environment and cause significant falls in the price paid to growers. The more that Greece's guaranteed national quantity of 782 000 tonnes has been exceeded, the higher the penalties imposed. Fixing Greece's actual cotton production determines the size of the cut in both the minimum price and the amount of aid. The higher actual production is, the lower the minimum price. Out of a total production of 1 354 000 tonnes supplied to processing plants, Greece considered that only 1 183 000 tonnes is eligible for aid. To reach this figure, compliance with certain administrative procedures is required, but the Commission, in accordance with the opinion given by its legal service, chose the higher volume of 1 246 838 tones, which nonetheless remains more favourable to Greece than that initially proposed by Commissioner Franz Fischler. The latter proposed keeping back an additional 24 717 tonnes corresponding to half of the 49 434 tonnes produced on surface areas not declared under the IACS (Integrated Administrative and Control System). Commissioners Michaele Schreyer and Chris Patten would have liked the whole 49 434 tonnes to be entered into accounts for Greece's actual production.