WORLD TRADE
ORGANIZATIONG/SCM/N/60/HUN
13 January 2004
(04-0084)
Committee on Subsidies
and Countervailing MeasuresOriginal:  English
SUBSIDIES
Updating Notification Pursuant to Article XVI:1 of the GATT 1994
and Article 25 of the Agreement on Subsidies and
Countervailing Measures
HUNGARY
The following communication, dated 18 December 2003, is being circulated at the request of
the Delegation of Hungary.
_______________
INTRODUCTION
Hungary’s notification contains both industrial and agricultural assistance programmes for the
implementation of which there was legislative authority in 1999, irrespective of whether they became
operative or not.  Assistance programmes for which the legislative authority has expired, but there
were payments in 1999, are also included.
The fact that an assistance programme has been notified does not, in accordance with
Article 25.7 of the Agreement on Subsidies and Countervailing Measures, prejudge its legal status
under GATT 1994 or this Agreement, nor does it prejudge its effects under the Agreement on the
nature of the measure itself.  Furthermore this does not imply in any way that any of the measures
notified, wholly or in part constitutes a specific subsidy.
In the case of previously notified programmes, only changes that occurred therein during the
period covered by this notification are indicated.  Newly notified programmes are reported in full,
pursuant to the agreed format of G/SCM/6.G/SCM/N/60/HUN
Page 2
1999
TABLE OF CONTENTS
1. Export Enhancement Programmes...................................................................................... 7
1.1 Export enhancement programme for agricultur al products ..................................................... 7
1.2 Export enhancement programme for apple harv ested in1996.................................................. 7
1.3 Export enhancement prog ramme for li ve pig .......................................................................... 8
1.4 Export enhancement programme for po tatoes for human consumption .................................. 8
1.5 Intervention assistance of financin g surplus stocks of dried onion.......................................... 8
1.6 Assistance to the export of  seasonal milk  surplus.................................................................... 9
1.7 Export enhancement programme for cert ain pork and processed pork products..................... 9
1.8 Export enhancement programme for rabbit for slaughter...................................................... 10
1.9 Export enhancement programme for 500,000 tons of wheat for feeding purposes ............... 11
1.10 Export enhancement programme for wheat harves ted in 1998.............................................. 12
1.11 Export enhancement programme for milling or EURO wheat .............................................. 13
1.12 Export enhancement programme for table, regional and quality white wine in Barrels........ 14
1.13 Export enhancement prog ramme for mu shroom ................................................................... 14
1.14 Export enhancement programme for certai n canned meat  and meat products ..................... 15
1.15 Additional export assistance for certain duck meat ............................................................... 15
1.16 Export enhancement programme for cert ain pork and processed pork products................... 16
Szabolcs-Szatmár-Bereg, Borsod-Abaúj- Zemplén, Hajdú-Bihar, Jász-Nagykun
Szolnok, Békés, Csongrád and Bács-Kiskun county
1.17 Export enhancement programme fo r surplus stocks of sugar ................................................ 17
2. Price-Related Support Programmes for Certain Agricultural Products........................ 18
2.1 Support programmes for beef for sl aughter ........................................................................... 18
2.1.1 State purchase of beef for slau ghter at guaran teed price ....................................................... 18
2.1.2 Intervention support for the quality production of beef for slaugh ter.................................... 19
2.2 Support programmes for pig for slau ghter............................................................................. 21
2.2.1 State purchase of pig for slau ghter at guaran teed price ......................................................... 21
2.2.2 Intervention support for the quality  production of pig for slaughter ..................................... 22
2.2.3 Intervention support for pig for slaughter of  large weight origin ating from family .............. 23
2.3 Support programme for maiz e for feeding purposes ............................................................. 24
2.3.1 State purchase of maize for feeding purposes at guaranteed price harvested in 1997........... 24
2.3.2 Certain measures regarding disturbances on the market of maize for feeding purposes ....... 252.3.3 State purchase of maize for feeding purposes at guaranteed price harvested in 1998........... 25
2.3.4 State purchase of maize for feeding purposes at guaranteed price harvested in 1999........... 26
2.4 Support programmes for whea t for human c onsumption....................................................... 27
2.4.1 State purchase of wheat for human consumption harvested in 1998 at guaranteed Price ..... 27
2.4.2 State purchase of wheat for human consumption harvested in 1999  at guaranteed price...... 27
2.4.3 Income support for certain producers through intervention purchase of their wheat
harvested in 1998.............................................................................................................. ..... 28
2.5 Support programm es for milk................................................................................................ 2 9
2.5.1 Regulation of the ma rket for co w milk .................................................................................. 29
2.5.2 Quality-linked suppo rt for co w milk...................................................................................... 3 0
2.5.3 Assistance to the purchase of qualified sheep milk ............................................................... 31
2.6 Support programmes  for apple............................................................................................... 3 2
2.6.1 Intervention assistance to the processing  of apple in bulk harvested in 1996 ....................... 32
2.6.2 Intervention assistance to the processing  of apple in bulk harvested in 1997 ....................... 32
2.6.3 Intervention assistance to the purchase of  apple in bulk harvested in 1998 ......................... 33G/SCM/N/60/HUN
Page 3
2.6.4 Interest subsidy on loans received for the purchase and storage of the extra and 1st class
fresh apple harves ted in 1998 ................................................................................................ 34
2.6.5 Intervention assistance to the purchas e of apple in bulk produced in 1999........................... 34
2.7 Support programmes for wine ............................................................................................... 35
2.7.1 Intervention assistance for the distillation of wine produced in 1997 in order to reduce
stocks ......................................................................................................................... ............ 35
2.7.2 Intervention assistance for the distillation of vintage wine of  1998 in order to reduce
stocks ......................................................................................................................... ............ 35
2.7.3 Interest subsidy for the purchase of white grapes produced in 1998 in certain regions ........ 36
2.8 Support programme for barley, rye,  triticale harv ested in 1998 ............................................ 37
2.8.1 Income support for certain producers through intervention purchase of their barley,
rye, triticale ha rvested in 1998............................................................................................... 37
2.9 Support programm e for poultry ............................................................................................. 38
2.9.1 Assistance to the production of quality poultry fo r slaughter................................................ 38
3-4 Other Support Programmes ............................................................................................... 39
3.1 Assistance to stock-breeding................................................................................................ .. 39
3.2 Assistance to fi shery act ivities............................................................................................ ... 40
3.3 Assistance to agricu lture and fo restry.................................................................................... 40
3.3.1 Assistance to the preservation or development of biological bases and the modernisation
of related system of qualification........................................................................................... 41
3.3.1.1 Assistance to gene tic development ....................................................................................... .4 1
3.3.1.2 Assistance to the purchase and changes of breeding animals and to the expansion of
their stocks ................................................................................................................... .......... 42
3.3.2 Assistance to the utilisation of arable lands in disadvantaged producing areas..................... 43
3.3.3 Assistance to investment in and developmen t of agricultural production and processing..... 43
3.3.4 Assistance to mending, cultivating and preserving the quality and the quantity of forests ... 43
3.3.5 Assistance to the establishment of sylvic ulturist and co-operative associations ................... 44
3.4 Assistance to game husbandry............................................................................................... 4 4
3.5 Assistance to the protect ion of arable land ............................................................................ 45
3.6 Assistance to the construction a nd the renovation of buildings............................................. 47
3.6.1 Assistance to the construction of build ings of "new type" co-operatives and
organisations working in the fi shery and forest ry sectors...................................................... 47
3.6.2 Assistance to technology invest ments in the f ood industry ................................................... 48
3.7 Assistance to the establishment of vineyards and orchards and renewal of vineyards.......... 493.8 Regional assistance programmes ........................................................................................... 50
3.8.1 Assistance to the developmen t of disadvanta ged regions...................................................... 50
3.8.2 Assistance to the inhabitants of settlements with less than 3 000 inhabitants living
in disadvantaged regions....................................................................................................... .5 0
3.8.3 Additional assistance to certain co unties in disadvantaged areas .......................................... 50
3.8.4 Assistance to the devel opment of agro -tourism..................................................................... 51
3.9 Assistance to foster co- operative integration......................................................................... 52
3.10 Assistance to the purchase of individual  shares of members of co-operatives ...................... 53
3.11 Assistance to the realisation of certai n goals of the agri cultural policy................................. 53
3.11.1 Assistance to the realisation of certai n goals of the agri cultural policy................................. 53
3.11.2 Assistance to agricultural  information network..................................................................... 54
3.11.3 Assistance to foreign training programmes ........................................................................... 55
3.11.4 Assistance to agricultural research and development of non-profit organisations................. 56
3.11.5 Assistance to purchasing state-of-the-art technical equipment for institutions engaged
in agricultural resear ch and development .............................................................................. 56
3.12 Assistance to common mark eting in ag ricultu re.................................................................... 57
3.13 Agricultural rese arch programmes......................................................................................... 58G/SCM/N/60/HUN
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3.14 Assistance to the joint establishment of wholesale markets by producers and
to investments of joint sales organisations of producers........................................................ 58
4.1 Finance subsidies........................................................................................................... ....... 58
4.1.1 Assistance given to further agricultural activitie s.................................................................. 58
4.1.2 Government guaran tee...................................................................................................... ..... 58
4.1.3-4.1.4 Assistance to the purchase and l easing of agricultur al machinery ................................... 58
4.1.5 Assistance to members of co-ope ratives in acquiring loans .................................................. 59
4.1.6 Interest rate subsidy for bank loans for maximum one year, and for more than one
year, government  guarantee................................................................................................... 60
4.1.7 Interest subsidy for purchasing grain seed with quality assurance necessary for the
1999 sowing.................................................................................................................... ....... 61
4.1.8 Government guarantee for a HUF 16 billion loan given to small companies in the
canning sector ................................................................................................................. ....... 62
4.2 Assistance to the production of certain agricultu ral products................................................ 63
4.3 Assistance to the restructuring of the agricult ural sector....................................................... 63
4.4 Assistance to soil melioration and to irrigati on investment................................................... 64
4.5 Assistance for planting and restruct uring forests and afforestation....................................... 65
4.6 Payments for relief from envir onmental degradati on of forests ............................................ 66
4.7 Refund of the consumpti on tax on diesel fuel........................................................................ 66
4.8 Assistance to the participa tion in insuran ce schemes ............................................................ 67
4.9 Payments for relief fr om natural di sasters ............................................................................. 68
4.9.1 Payments for relief from natural disast ers affecting plant cu ltivation in 1995 ...................... 68
4.9.2 Payments for relief from  fireblight disease............................................................................ 68
4.9.3 Payments for relief from natural disast ers affecting plant cu ltivation in 1997 ...................... 68
4.9.4 Payments from relief from natural disa sters not covered by insurance policies.................... 68
4.9.5 Assistance to provide relief from the damage caused by the extraordinary
weather conditions in June and July 1999 ............................................................................. 69
4.9.6 Assistance to provide relief from the damage caused by flood and internal water
occurred in 1999 ............................................................................................................... ..... 71
4.9.7 Assistance to the interventi on of unharvested sugar beet ...................................................... 72
4.10 Assistance to the organisation of wine-growing  communities .............................................. 72
4.11 Assistance to the utilisation of advisory and exte nsion services............................................ 72
4.12 Assistance to the "Borsod- Abaúj-Zemplén" region............................................................... 73
4.13 Assistance to the maintenance of  recreational and park woods............................................. 73
4.14 Assistance to tobacc o harvested in 1995 ............................................................................... 74
4.15 Assistance to potatoes  harvested in 1996............................................................................... 75
4.16 Assistance to stabil ise the egg market.................................................................................... 7 5
4.17 Intervention support for qualit y production of ga me birds .................................................... 76
4.18 Assistance to beekeepers................................................................................................... ..... 76
4.19 Assistance to the establishment of en vironmentally friendl y crop structure ......................... 76
4.20 Assistance to the transitio n to organic production................................................................. 76
4.21 Assistance to stabilisati on of the cere al market ..................................................................... 77
4.22 Intervention assistance to producers of wheat for feeding purposes for selling
their crop..................................................................................................................... ........... 78
4.23 Assistance to the maintenance and development of the statistical data-bases
of producers’  councils......................................................................................................... ... 78
4.24 Assistance to the improvem ent of compet itiveness ............................................................... 79
4.25 Assistance to the reduction of costs relati ng to the rental of  agricultura l land ...................... 80
4.26 Assistance to socially disadvan taged agricultural  communities ............................................ 80
4.27 Assistance to the construction and modernisation of rural ro ads........................................... 81
4.28 Assistance to the servi ce of field wardens ............................................................................. 82
4.29 Assistance to young farmers ................................................................................................ .. 82G/SCM/N/60/HUN
Page 5
4.30 Assistance to agricu ltural employment.................................................................................. 83
4.31 Assistance to the schoo l milk prog ramme ............................................................................. 83
4.32 Assistance to the purchasing of the required amount of the maize for
feeding pur poses ............................................................................................................... ..... 84
4.33 Additional assistance to the storage of maize harvested in 1998 for feeding
purposes in public warehouses............................................................................................... 85
4.34 Wheat exchange  transaction ................................................................................................. .8 6
4.35 Assistance to the purchase of whea t seed for the 1998 autumn sowing ................................ 87
4.36 Interest subsidy to loans received for the purchase of apple in bulk harvested
in 1997 for proces sing purposes ............................................................................................ 87
4.37 Interest subsidy on loans received for the purchase of apple in bulk harvested
in 1998 ........................................................................................................................ ........... 88
4.38 Intervention assistance to the sell ing of wheat for f eeding purposes..................................... 89
4.39 Market intervention rela ted to duck production..................................................................... 90
4.40 Quality-linked support to th e production of sugar beet ......................................................... 90
4.41 Emergency income support to ce rtain producers of cereals .................................................. 91
4.42 Assistance to reduce certain san itary and phytosani tary costs............................................... 92
4.43 Assistance to the produc tion of sowi ng seed ......................................................................... 93
4.44 Assistance to the purchase of the required amount of cereals for feeding and
of wheat for mill ing purposes ................................................................................................ 94
4.45 Assistance to the storage in public wa rehouse of wheat harvested in 1998........................... 95
4.46 Assistance to introduce the HACCP system of quality management .................................... 96
4.47 Intervention support to maintain the EU approved level of hygiene of pig and cattle
slaughter houses................................................................................................................ ...... 97
4.48 Assistance to organisations producing and selling fruit and vegetables................................ 97
4.49 Assistance to research and to development of co-operatives................................................. 98
4.50 Assistance to programmes of development of agricultural structure and rural
areas .......................................................................................................................... ............. 98
4.51 Assistance to techni cal development ..................................................................................... 99
4.52 Assistance to genetic and technological development and to the utilisation of innovations 100
4.53 Assistance to plant protection against the damage caused by non-
indigenous disease ............................................................................................................. .. 101
4.54 Assistance to regional (ter ritorial) development.................................................................. 102
4.55 Payments for relief from dama ge caused by w ild anim als .................................................. 103
4.56 Assistance to the market of pig for sl aughter....................................................................... 104
4.57 Assistance to the storage in public warehouse of barley, rye and triticale
harvested in 1998.............................................................................................................. ... 104
4.58 Area-based payment fo r crop production ............................................................................ 105
4.59 Assistance to the quality control of ce rtain foods................................................................ 106
5. Corporate Tax Concessions to Assist Structural Adjustment and Economic
Development.................................................................................................................... ... 107
5.1 Corporate tax concession for compan ies with foreign participation.................................... 107
5.2 Tax concession for dividend invested in  Hungary by foreign shareholders ........................ 108
5.3 Tax concession in en trepreneuria l zone............................................................................... 108
5.4 Tax concession related to  regional inve stments................................................................... 108
5.5 Tax concession for investment s exceeding 1 billion HUF .................................................. 109
5.6 Tax concession for investment s exceeding 3 billion HUF .................................................. 109
5.7 Tax concession for investment s exceeding 10 billion HUF ................................................ 109
5.8 Tax concession to promote structural adjustment................................................................ 110
5.9 Tax concession for bank credits financing other investments ............................................. 110
5.10 Tax rate relief for foreign investors ..................................................................................... 1 11
5.11 Investment-related  tax concessions...................................................................................... 111G/SCM/N/60/HUN
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5.12 Tax concession  in regi ons of high priority.......................................................................... 112
5.13 Tax concession to promote investments in production of exportable goods ....................... 112
5.14 Tax relief related to R&D activities..................................................................................... 11 2
6. Basic Central Technical Development Programme........................................................ 113
7. Territorial Development Fund.......................................................................................... 1138. Budgetary Scheme Earmarked for Economic Development ......................................... 1149. Mining Conversion Programme ....................................................................................... 114
10. Central Environment Protection  Fund........................................................................... 114G/SCM/N/60/HUN
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1. Export enhancement programmes
1.1. Export enhancement programme for agricultural products
1. Title of the subsidy programme
Export enhancement programme for agricultural products
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To help to maintain the equilibrium between domestic supply and demand and to improve the
competitiveness of the products in export markets.
4. Background and authority for the subsidy
Decree 11/1998 (III. 31.) a nd 47/1998 (VI. 16.) FM-PM-IKIM of the Minister of Agriculture,
the Minister for Finance and the Minister for I ndustry, Trade and Tourism, 29/1998. (X.1.), 53/1998
(XI. 6), 65/1998, 12/1999 (II. 1.), 51/1999 (V. 31.), 67/1999 (VIII. 16.) and 74/1999 (IX. 1.) FVM-
PM-GM of the Minister for Agriculture and Regional Development, the Minister for Finance and the
Minister for Economic Affairs
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Exporters
7. Subsidy per unit or the total amount
The list of products benefiting from and the corresponding per unit amount of export
subsidies for 1999 are contained in the annexes to the above decrees.
Payments under this programme amounted to HUF 19 665 million during the period covered
by the notification.
8. Duration of the subsidy
From 31 March 1998 to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
1.2. Export enhancement programme for apple harvested in 1996
Phased outG/SCM/N/60/HUN
Page 8
1.3. Export enhancement programme for live pig
1. Title of the subsidy programme
Export enhancement programme for live pig
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To help to maintain the equilibrium between domestic supply and demand and to improve the
competitiveness of the products in export markets.
4. Background and authority for the subsidy
Decree 41/1998 (V.22.) FM of the Minister for Agriculture as amended by 14/1998 (VIII.28.)
FVM of the Minister for Agriculture and Regional Development
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Exporters
7. Subsidy per unit or the total amount
HUF 30 per kgPayments under this programme amounted to HUF 26 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 June 1998 to 31 March 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
1.4. Export enhancement programme for potatoes for human consumption
Phased out
1.5. Intervention assistance of financing surplus stocks of dried onion
Phased outG/SCM/N/60/HUN
Page 9
1.6. Assistance to the export of seasonal milk surplus
1. Title of the subsidy programme
Assistance to the export of seasonal milk surplus
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To help to maintain the equilibrium between domestic supply and demand.
4. Background and authority for the subsidy
Decree 40/1998. (V. 22.) FM of the Minister for Agriculture and 76/1999 (IX. 1.) FVM of the
Minister for Agriculture and Regional Development
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Exporters
7. Subsidy per unit or the total amount
HUF 150 - 540 per kg net weight depending on the product
8. Duration of the subsidy
Duration has not been specifiedPayments under this programme amounted to HUF 500 million during the period covered by
the notification.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
1.7. Export enhancement programme for certain pork and processed pork products
1. Title of the subsidy programme
Export enhancement programme for certain pork and processed pork products
2. Period covered by the notification
1999G/SCM/N/60/HUN
Page 10
3. Policy objective and/or purpose of the subsidy
To help to maintain the equilibrium between domestic supply and demand and to improve the
competitiveness of the products in export markets.
4. Background and authority for the subsidy
Decree 17/1998. (IV.3.) FM of the Minister for Agriculture as amended by Decree 16/1998
(VIII.28.) and 50/1998. (XI.4.) FVM of the Minist er for Agriculture and Regional Development
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Exporters
7. Subsidy per unit or the total amount
HUF 20 to 63 per kg depending on the type/variety of the pork meat
Payments under this programme amounted to HUF 861 million during the period covered by
the notification.
8. Duration of the subsidy
From 3 April 1998 to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
1.8. Export enhancement programme for rabbit for slaughter
1. Title of the subsidy programme
Export enhancement programme for rabbit for slaughter
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To help to maintain the equilibrium between domestic supply and demand and to improve the
competitiveness of the products in export markets.
4. Background and authority for the subsidy
Decree 23/1998. (IV. 17.) FM of the Minister for AgricultureG/SCM/N/60/HUN
Page 11
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Exporters
7. Subsidy per unit or the total amount
HUF 20 per kg
Payments under this programme amounted to HUF 15 million during the period covered by
the notification.
8. Duration of the subsidy
From 17 April to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
1.9. Export enhancement programme for 500,000 tons of wheat for feeding purposes
1. Title of the subsidy programme
Export enhancement programme for 500,000 tons of wheat for feeding purposes
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To help to maintain the equilibrium between domestic supply and demand and to improve the
competitiveness of the products in export markets.
4. Background and authority for the subsidy
Decree 24/1998. (IV. 17.) FM of the Minister for Agriculture as amended by Decree 51/1998
(VI. 26.) FM of Minister for Agriculture and 13/199 8 (VIII. 28) FVM of the Minister for Agriculture
and Regional Development
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
ExportersG/SCM/N/60/HUN
Page 12
7. Subsidy per unit or the total amount
HUF 1,500 per ton
Payments under this programme amounted to HUF 6 million during the period covered by the
notification.
8. Duration of the subsidy
From 17 April to 31 August 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
1.10. Export enhancement programme for wheat harvested in 1998
1. Title of the subsidy programme
Export enhancement programme for wheat harvested in 1998
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To help to maintain the equilibrium between domestic supply and demand and to improve the
competitiveness of the products in export markets.
4. Background and authority for the subsidy
Decree 8/1998. (VII. 31.) FVM of the Minister  for Agriculture and Regional Development
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Exporters
7. Subsidy per unit or the total amount
HUF 1,500 per tonPayments under this programme amounted to HUF 443 million during the period covered by
the notification.G/SCM/N/60/HUN
Page 13
8. Duration of the subsidy
From 1 August to 31 December 1998
9 Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
1.11. Export enhancement programm e for milling or EURO wheat
1. Title of the subsidy programme
Export enhancement programme for milling or EURO wheat
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To help to maintain the equilibrium between domestic supply and demand and to improve the
competitiveness of the products in export markets.
4. Background and authority for the subsidy
Decree 56/1998. (VII. 7.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Exporters
7. Subsidy per unit or the total amount
HUF 1,500-2,000 per ton
Payments under this programme amounted to HUF 28 million during the period covered by
the notification.
8. Duration of the subsidy
From 7 July to 31 October 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/60/HUN
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1.12. Export enhancement programme for table, regional and quality white wine in barrels
1. Title of the subsidy programme
Export enhancement programme for table, regional and quality white wine in barrels
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To help to maintain the equilibrium between domestic supply and demand and to improve the
competitiveness of the products in export markets.
4. Background and authority for the subsidy
Decree 53/1998. (VI. 26.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Exporters
7. Subsidy per unit or the total amount
HUF 12 per liter
Payments under this programme amounted to HUF 14 million during the period covered by
the notification.
8. Duration of the subsidy
From 26 June to 15 November 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
1.13. Export enhancement programme for mushroom
1. Title of the subsidy programme
Export enhancement programme for mushroom
2. Period covered by the notification
1999G/SCM/N/60/HUN
Page 15
3. Policy objective and/or purpose of the subsidy
To help to maintain the equilibrium between domestic supply and demand and to improve the
competitiveness of the products in export markets.
4. Background and authority for the subsidy
Decree 34/1998. (V. 13.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Exporters
7. Subsidy per unit or the total amount
HUF 25 per kg
Payments under this programme amounted to HUF 26 million during the period covered by
the notification.
8. Duration of the subsidy
From 13 May 1998 to 31 January 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
1.14. Export enhancement programme for certain canned meat  and meat products
Phased out
1.15. Additional export assistance for certain duck meat
1. Title of the subsidy programme
Additional export assistance for certain duck meat
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To help to maintain the equilibrium between domestic supply and demand and to improve the
competitiveness of the products in export markets.G/SCM/N/60/HUN
Page 16
4. Background and authority for the subsidy
Decree 55/1998. (VI.26.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Exporters
7. Subsidy per unit or the total amount
HUF 28 to 45 per kg depending on the variety/type of the meat
Payments under this programme amounted to HUF 41 million during the period covered by
the notification.
8. Duration of the subsidy
From 26 June to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
1.16. Export enhancement programme for certain pork and pork products of Szabolcs-Szatmár-
Bereg, Borsod-Abaúj-Zemplén, Hajdú-Bihar, Jász-Nagykun-Szolnok, Békés, Csongrád and
Bács-Kiskun county
1. Title of the subsidy programme
Export enhancement programme for certain pork and processed pork products
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To help to maintain the equilibrium between domestic supply and demand and to improve the
competitiveness of the products in export markets.
4. Background and authority for the subsidy
Decree 43/1999. (IV. 23.) FVM of the Minister for Agriculture and Regional Development
5. Form of the subsidy
GrantG/SCM/N/60/HUN
Page 17
6. To whom and how the subsidy is provided
Exporters
7. Subsidy per unit or the total amount
HUF 60 per kgPayments under this programme amounted to HUF 110 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 to 31 May 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
1.17. Export enhancement programme for surplus stocks of sugar
1. Title of the subsidy programme
Export enhancement programme for the surplus stocks of sugar
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To reduce the surplus stocks of sugar
4. Background and authority for the subsidy
Decree 47/1998. (XI. 4.) FVM of the Minister for Agriculture and Regional Development
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Exporters
7. Subsidy per unit or the total amount
HUF 2.33 per kg
Payments under this programme amounted to HUF 13 million during the period covered by
the notification.G/SCM/N/60/HUN
Page 18
8. Duration of the subsidy
From 4 November to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2. Price-related support programmes for certain agricultural products
2.1. Support programmes for beef for slaughter
2.1.1. State purchase of beef for slaughter at guaranteed price
1. Title of the subsidy programme
State purchase of beef for slaughter at guaranteed price
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To stabilise and support agricultural income and prices.
4. Background and authority for the subsidy
Decree 35/1998. (X. 9.) FVM of the Minister for Agriculture
5. Form of the subsidy
Buying-in of beef for slaughter at guaranteed prices.
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Classification, quality standards, guaranteed prices
Definition
Cattle ClassGuaranteed
price
(HUF per kg)
1st group: male E and  1st class  260
 2nd group: male E and  1st class  210
3rd group male  E and  1st class (250-450 kg)          180
 More than 450 kg  170
No intervention occurred during the period covered by the notification.G/SCM/N/60/HUN
Page 19
8. Duration of the subsidy
From 1 January to 31 December 1999.
9. Statistical data permitting an assessment of the trade effects of the  subsidy
N.A.
2.1.2. Intervention support for the quality production of beef for slaughter
1. Title of the subsidy programme
Intervention support for the quality production of beef for slaughter
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To ensure the equilibrium between domestic supply and demand, to support agricultural
income and encourage quality production.
4. Background and authority for the subsidy
Decree 5/1999 (I.14.) FVM of the Minister for Agriculture and Regional Development
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers, processors
7. Subsidy per unit or the total amount
Classification, quality standards, guidance prices
Definition: Cattle Class Guidance price, HUF per kg
1st group: male E and 1st class 275
2nd group: male E and 1st class 230G/SCM/N/60/HUN
Page 20
Support for producers:
1st  group 2nd group
Purchase price (HUF) Payment (HUF) Purchase price
(HUF)Payment
(HUF)
270 0 225 0
269 1 224 1
268 2 223 2
267 3 222 3
266 4 221 4
265 5 220 5
264 6 219 6
263 7 218 7
262 8 217 8
261 9 216 9
260 10 215 10
259 11
258 12
less than 258 12 Less than 215 10
Support for processors:
1st  group 2nd group
Purchase price (HUF) Payment (HUF) Purchase price
(HUF)Payment (HUF)
280 0 235 0
281 1 236 1
282 2 237 2
283 3 238 3
284 4 239 4
285 5 240 5
286 6 241 6
287 7 242 7
288 8 243 8
289 9 244 9
290 10 245 10
291 11
292 12
More than 292 12 More than 245 10
Payments under this programme amounted to HUF 101 million during the period covered by the
notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/60/HUN
Page 21
2.2. Support programmes for pig for slaughter
2.2.1. State purchase of pig for slaughter at guaranteed price
1. Title of the subsidy programme
State purchase of pig for slaughter at guaranteed price
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To stabilise and support agricultural income and prices
4. Background and authority for the subsidy
36/1998. (X. 9.) FVM and 37/1998. (X. 9.) FVM of the Minister for Agriculture; 7/1999
(I.14.) FVM of the Minister for Agriculture and Regional Development
5. Form of the subsidy
Buying-in of pig for slaughter at guaranteed prices.
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Classification, quality standards, guaranteed prices:
Class Guaranteed price, HUF per kg
(carcass weight)
E and S 216-270
U 200-250
R 182-228
No intervention occurred during the period covered by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/60/HUN
Page 22
2.2.2. Intervention support for the quality production of pig for slaughter
1. Title of the subsidy programme
Intervention support for the quality production of pig for slaughter
2. Period covered by the notification           
1999
3. Policy objective and/or purpose of the subsidy
To ensure the equilibrium between domestic supply and demand, to support agricultural
income and encourage quality production.
4. Background and authority for the subsidy
Decree 45/ 1997 (VI.25) FM of the Minister for Agriculture; 87/1997 (XI.26.) FM of the
Minister for Agriculture; 15/1998 (VIII.28.) FVM of the Minister for Agriculture and Regional
Development; 52/1998. (XI.4.) FVM of the Minister  for Agriculture and Regional Development;
6/1999 (I.14.) FVM of the Minister for Agricultur e and Regional Development; 20/1999. (I.12.) FVM
of the Minister for Agriculture and Regional Development; 34/1999. (IV.2.) FVM of the Minister forAgriculture and Regional Development; 42/1999. (IV.23.) FVM of the Minister for Agriculture and
Regional Development; 54/1999. (VI.11) FVM of the Minister for Agriculture and Regional
Development; 81/1999. (IX.17.) FVM of the Minister  for Agriculture and Regional Development.
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers, processors
7. Subsidy per unit or the total amount
Classification, quality standards, guidance prices:
Class Guidance price, HUF per kg
E and S 284-306
U 263-293
R 240-281
O 209-267
P 199-257
The amount of support depended on the purchase price.G/SCM/N/60/HUN
Page 23
Producers:
Class Purchase price Available support
E and S 0-299 HUF 0-40
U 0-286 HUF 0-40
R 0-274 HUF 0-40
O 0-202 HUF 0-35
P 0-192 HUF 0-35
Processors:
Class Purchase price Available support
E and S 291 - HUF 0-12
U 270 - HUF 0-12
R 247 - HUF 0-12
Payments under this programme amounted to HUF 7 877 million during the period covered by the
notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.2.3. Intervention support for pig for slaughter of large weight originating from family farms and
private producers
1. Title of the subsidy programme
Intervention support for pig for slaughter of la rge weight originating from family farms and
private producers
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To ensure the equilibrium between domestic supply and demand.
4. Background and authority for the subsidy
61/1999 (VII.13.) FVM of the Minister for Agriculture and Regional Development
5. Form of the subsidy
GrantG/SCM/N/60/HUN
Page 24
6. To whom and how the subsidy is provided
Processors
7. Subsidy per unit or the total amount
HUF 40 per kg for pigs weighing minimum 160 kg if the purchase price is HUF 193 per kg.Payments under this programme amounted to HUF 14.3 million during the period covered by
the notification.
8. Duration of the subsidy
From 13 July  to 22 October 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.3 Support programme for maize for feeding purposes
2.3.1. State purchase of maize for feeding purposes at guaranteed price harvested in 1997
1. Title of the subsidy programme
State purchase of maize for feeding purposes at guaranteed price
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To stabilise and support agricultural income and prices.
4. Background and authority for the subsidy
95/1997. (XI.28) FM of the Minister for Agriculture
5. Form of the subsidy
Buying-in of maize for feeding purposes at guaranteed price.
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
The guaranteed price was HUF 15 000 per tonMaximum quantity that one producer may offer for purchase 3.2 tons per haG/SCM/N/60/HUN
Page 25
Payments under this programme amounted to HUF 1.1 million during the period covered by
the notification.
8. Duration of the subsidy
From 28 November 1997 to 3 November 2001
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.3.2 Certain measures regarding disturbances on the market of maize for feeding purposes
Phased out
2.3.3 State purchase of maize for feeding purposes at guaranteed price harvested in 1998.
1. Title of the subsidy programme
State purchase of maize for feeding purposes at guaranteed price
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To stabilise and support agricultural income and prices.
4. Background and authority for the subsidy
55/1998. (XII.2)FVM of the Minister for Agriculture and Regional Development
5. Form of the subsidy
Buying-in of maize for feeding purposes at guaranteed price.
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
The guaranteed price was HUF 16.500 per tonMaximum quantity that one producer may offer for purchase 3.2 tons per haPayments under this programme amounted to HUF 2,762 million during the period covered
by the notification.G/SCM/N/60/HUN
Page 26
8. Duration of the subsidy
From 2 December 1998 to 1 October 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.3.4 State purchase of maize for feeding purposes at guaranteed price harvested in 1999
1. Title of the subsidy programme
State purchase of maize for feeding purposes at guaranteed price
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To stabilise and support agricultural income and prices.
4. Background and authority for the subsidy
22/1999. (II.26) FVM of the Minister for Ag riculture and Regional Development and
102/1999. (XII. 1.) FVM of the Minister for Agriculture and Regional  Development
5. Form of the subsidy
Buying-in of maize for feeding purposes at guaranteed price.
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
The guaranteed price was HUF 14.000 per tonMaximum quantity that one producer may offer for purchase 3.2 tons per haNo payments occurred under this programme.
8. Duration of the subsidy
From 6 March 1999 to 1 March 2000
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/60/HUN
Page 27
2.4 Support programmes for wheat for human consumption
2.4.1. State purchase of wheat for human consumption harvested in 1998 at guaranteed price
1. Title of the subsidy programme
State purchase of wheat for human consumption harvested in 1998 at guaranteed price
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To stabilise and support agricultural income and prices.
4. Background and authority for the subsidy
1/1998. (VII.16)FVM 3§ a,b,c,d, 4.§1/a, 1/b, 2; 5§/a,b, 5§/2d, 2f, 11§1/a, 2 Decree 12/1998.
(VIII.18.) FVM of the Minister for Agriculture and Regional Development; Decree 48/1999.
(V.21.)FVM of the Minister for Agriculture and Regional Development;
5. Form of the subsidy
Buying-in of wheat for human consumption at guaranteed price.
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
The guaranteed price was HUF 18 000 per ton.
Maximum quantity of wheat that one producer may offer for purchase:  2.4 tons per ha.
Payments under this programme amounted to HUF 1,192 million during the  period covered
by the notification.
8. Duration of the subsidy
From 6 September 1998 to 10 October 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.4.2. State purchase of wheat for human consumption harvested in 1999 at guaranteed price
1. Title of the subsidy programme
State purchase of wheat for human consumption harvested in 1999 at guaranteed priceG/SCM/N/60/HUN
Page 28
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To stabilise and support agricultural income and prices.
4. Background and authority for the subsidy
78/1999(IX.3.) FVM 3§,4§,6§ of the Minister fo r Agriculture and Regional Development
5. Form of the subsidy
Buying-in of wheat for human consumption at guaranteed price.
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
The guaranteed price was HUF 18 000 per ton.Maximum quantity of wheat that one producer may offer for purchase:  2.4 tons per ha.
Payments under this programme amounted to HUF 40,2 million during the  period covered by
the notification.
8. Duration of the subsidy
From 3 November 1998 to 30 November 2000
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.4.3. Income support for certain producers through intervention purchase of their wheat harvested
in 1998
1. Title of the subsidy programme
Income support for certain producers through intervention purchase of their wheat harvested
in 1998
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To stabilise and support agricultural income of small producers.G/SCM/N/60/HUN
Page 29
4. Background and authority for the subsidy
Decree 3/1998. (VII.16.) §2, §5, §6, §7 FVM of th e Minister for Agriculture and Regional
Development, Decree 49/1999. (V.21.) FVM of the Minister for Agriculture and Regional
Development
5. Form of the subsidy
Buying-in of wheat harvested in 1998 of certain producers.
6. To whom and how the subsidy is provided
Producers with a registered area of wheat not exceeding 20.8 ha
7. Subsidy per unit or the total amount
The purchase prices:
HUF 18 000 per ton for Mill-type wheat
         16 000 per ton for EURO wheat
         13.000 per ton for wheat for feeding purposes
Maximum quantity of wheat that one producer ma y offer for purchase: 2.4 tons per ha, but the
maximum eligible quantity is 50 tons per producer
Payments under this programme amounted to HUF 1,219.4 million during the period covered
by the notification.
8. Duration of the subsidy
From 16 July 1998 to 3 November 2001
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.5 Support programmes for milk
2.5.1. Regulation of the market for cow milk
1. Title of the subsidy programme
Regulation of the market for cow milk
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To stabilise and support agricultural income and prices.G/SCM/N/60/HUN
Page 30
4. Background and authority for the subsidy
Decree 38/1998. (X.9.) FM of the Minister for Agriculture
5. Form of the subsidy
Buying-in of cow milk at guaranteed price
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Guaranteed price: HUF 53 per l for extra high quality milk
HUF 51 per l for first class quality milk
No intervention occurred during the period covered by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.5.2. Quality-linked support for cow milk
1. Title of the subsidy programme
Quality-linked support for cow milk
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To stabilise and support agricultural income.
4. Background and authority for the subsidy
Decree 112/1997 (XII.30.) FM of the Minister for Agriculture; 19/1998 (IX.1.) FVM of the
Minister for Agriculture and Regional Developm ent; 2/1999. (I.14.) FVM of the Minister for
Agriculture and Regional Development; 77/1999 (I X.1.) FVM of the Minister for Agriculture and
Regional Development
5. Form of the subsidy
GrantG/SCM/N/60/HUN
Page 31
6. To whom and how the subsidy is provided
Producers, processors
7. Subsidy per unit or the total amount
Processors:  HUF 3 per l for extra high quality milk, HUF 2 per l for first class milk if the
purchase price is at least HUF 55-58.50 per l for extra high quality milk and HUF 52-55.50 per l for
first class quality milk depending on the season.
Producers:  the above-mentioned subsidy per unit, if the purchase price is less than that
indicated above.
Payments under this programme amounted to HUF 5,425 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.5.3. Assistance to the purchase of qualified sheep milk
1. Title of the subsidy programme
Assistance to the purchase of qualified sheep milk
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To stabilise and support agricultural income and to encourage quality production.
4. Background and authority for the subsidy
Decree 101/1997. (XII .15.) FM of the Minister  for Agriculture; 16/1999 (I.10.) FVM of the
Minister for Agriculture and Regional Development
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
ProcessorsG/SCM/N/60/HUN
Page 32
7. Subsidy per unit or the total amount
HUF 25 per l for first class quality milk if the purchase price is at least 120 HUF per l.
Payments under this programme amounted to HUF 32.3 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January 1999 to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.6. Support programmes for apple
2.6.1. Intervention assistance to the processing of apple in bulk harvested in 1996
Phased out
2.6.2 Intervention assistance to the processing of apple in bulk harvested in 1997
1. Title of the subsidy programme
Intervention assistance to the processing of apple in bulk harvested in 1997
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To ensure the equilibrium between domestic supply and demand.
4. Background and authority for the subsidy
Decree 85/1997. (XI .26.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Processors
7. Subsidy per unit or the total amount
HUF 3 800 per ton if the purchase price is at least HUF 21, 000 per ton.  The maximum
eligible quantity for support is: 270, 000 tons.G/SCM/N/60/HUN
Page 33
Payments under this programme amounted to HUF 0.12 million during the period covered by
the notification.
8. Duration of the subsidy
From 26 November 1997 to 31 July 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.6.3. Intervention assistance to the purchase of  apple in bulk harvested in 1998
1. Title of the subsidy programme
Intervention assistance to the purchase of apple in bulk harvested in 1998
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To ensure the equilibrium between domestic supply and demand.
4. Background and authority for the subsidy
Decree 26/1998 (IX.18.) FVM of the Minister for Agriculture and Regional Development
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Processors
7. Subsidy per unit or the total amount
HUF 6, 000 per ton if the purchase price is at least HUF 18 000 per ton.  The maximum
eligible quantity for support is 350,000 tons.
Payments under this programme amounted to HUF 2,022 million during the period covered
by the notification.
8. Duration of the subsidy
From 18 September 1998 to 1 February 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/60/HUN
Page 34
2.6.4. Interest subsidy on loans received for the purchase and storage of the extra and 1st class fresh
apple harvested in 1998
1. Title of the subsidy programme
Interest subsidy on loans received for the purchase and storage of extra and 1st class fresh
apple harvested in 1998
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To ensure the equilibrium between domestic supply and demand
4. Background and authority for the subsidy
Decree 31/1998 (X.2.) FVM of the Minister for Agriculture and Regional Development
5. Form of the subsidy
Interest subsidy
6. To whom and how the subsidy is provided
Operators of fruit storage facilities
7. Subsidy per unit or the total amount
Interest subsidy of 100 per cent of the basic interest rate of the National Bank of Hungary if
the purchase price is at least HUF 35 per kg.
Payments amounted to HUF 35.1 million during the period covered by the notification.
8. Duration of the subsidy
From 2 October 1998  to 29 July 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.6.5. Intervention assistance to the purchase of apple in bulk produced in 1999
1. Title of the subsidy programme
Intervention support to the purchase of apple in bulk produced in 1999G/SCM/N/60/HUN
Page 35
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To ensure the equilibrium between domestic supply and demand
4. Background and authority for the subsidy
Decree 80/1999 (IX.17.) FVM of the Minister for Agriculture and Regional Development
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Operators of fruit storage facilities
7. Subsidy per unit or the total amount
HUF 6, 000 per ton if the purchase price is at least HUF 22, 000 per ton.No payments under this programme during the period covered by the notification.
8. Duration of the subsidy
From 17 September 1999 to 1 February 2000
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.7. Support programmes for wine
2.7.1. Intervention assistance for the distillation of wine produced in 1997 in order to reduce stocks
Phased out
2.7.2. Intervention assistance for the distillation of vintage wine of  1998 in order to reduce stocks
1. Title of the subsidy programme
Intervention assistance for the distillation of vintage wine of 1998 in order to reduce stocks
2. Period covered by the notification
1999G/SCM/N/60/HUN
Page 36
3. Policy objective and/or purpose of the subsidy
To reduce stocks.
4. Background and authority for the subsidy
Decree 28/1998. (IX.29.) FVM of the Minister for Agriculture and Regional Development
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Distilleries
7. Subsidy per unit or the total amount
The maximum subsidy is HUF 35 per l if the purchase price is at least HUF 50 per l.Payments under this programme amounted to HUF 138 million during the period covered by
the notification.
8. Duration of the subsidy
From 29 September 1998 to 31 January 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.7.3. Interest subsidy for the purchase of white grapes produced in 1998 in certain regions
1. Title of the subsidy programme
Interest subsidy for the purchase of white grapes produced in 1998 in certain regions
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To support the income of small holders.
4. Background and authority for the subsidy
Decree 32/1998 (X. 2) FVM of the Minister of Agriculture and Regional Development
5. Form of the subsidy
Interest subsidyG/SCM/N/60/HUN
Page 37
6. To whom and how the subsidy is provided
Processors
7. Subsidy per unit or the total amount
Interest subsidy of 50 per cent of the basic interest rate of the National Bank of Hungary, if
the purchase price is  HUF 30 per kg for normal, HUF 36 per kg for high quality grapes.
Payments under this programme amounted to HUF 215.3 million during the period covered
by the notification.
8. Duration of the subsidy
From 2 October 1998 to 30 April 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.8 Support programme for barley, rye, triticale
2.8.1. Income support for certain producers through intervention purchase of their barley, rye,
triticale harvested in 1998
1. Title of the subsidy programme
Income support for certain producers through intervention purchase of their barley, rye,
triticale harvested in 1998
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To stabilise and support agricultural income of small producers.
4. Background and authority for the subsidy
Decree 5/1998. (VII.23.) FVM of the Minister  for Agriculture and Regional Development
5. Form of the subsidy
Buying in of barley, rye, triticale harvested in 1998.
6. To whom and how the subsidy is provided
Producers with a registered area of these crops not exceeding 20.8 ha.G/SCM/N/60/HUN
Page 38
7. Subsidy per unit or the total amount
The purchase price was HUF 10,000 per ton.
Maximum quantity that one producer may offer for purchase: 2.4 tons per ha but the
maximum eligible quantity for support is 50 tons per producer.
Payments under this programme amounted to HUF 130.6 million during the period covered
by the notification.
8. Duration of the subsidy
From 23 July 1998 to 1 October 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
2.9 Support programme for poultry
2.9.1. Assistance to the production of quality poultry for slaughter
1. Title of the subsidy programme
Assistance to the production of quality poultry for slaughter
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To ensure the equilibrium between domestic supply and demand, to support agricultural
income and encourage quality production.
4. Background and authority for the subsidy
Decree 103/1997 (XII.15.) FM of the Minister  for Agriculture as amended by 10/1998
(III.31.) FM of the Minister for Agriculture; De cree 59/1998 (XII.16.) FVM of the Minister for
Agriculture and Regional Development; Decree 3/ 1999 (I.14.) FVM of the Minister for Agriculture
and Regional Development and Decree 84/1999 (X.1.)  FVM of the Minister for Agriculture and
Regional Development
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers, processorsG/SCM/N/60/HUN
Page 39
7. Subsidy per unit or the total amount
Producers:
The amount of subsidy is HUF 3 per kg if the purchase price is less than HUF 163/168
Processors:
1st class poultry: HUF 5 per kg
Young poultry for slaughter: HUF 7 per kg
Processors receive an additional HUF 3 per kg if the purchase price is at least HUF 163/168
Payments under this programme amounted to HUF 1 968 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 January 1998 to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3-4. Other support programmes
3.1. Assistance to stock-breeding
1. Title of the subsidy programme
Assistance to stock-breeding
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To support genetic development aimed at enhancing the breeding and utility value of
domestic animals and to develop the genetic background aimed at producing first-rate animal
products.
4. Background and authority for the subsidy
Decree 8/1999 (I. 20.) FVM of the Minister of  Agriculture and Regional Development, 350-
374. §
5. Form of the subsidy
GrantG/SCM/N/60/HUN
Page 40
6. To whom and how the subsidy is provided
Stock breeders
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 871 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.2. Assistance to fishery activities
1. Title of the subsidy programme
Assistance to fishery activities
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To facilitate the protection and preservation of fish stocks in waters, to enhance the values of
the fish stocks, to prevent the perishing of fish and eliminate the consequences thereof, and to
promote the execution of tasks connected with water utilisation for fishing and angling purposes.
4. Background and authority for the subsidy
Decree 8/1999 (I.20.) FVM of the Minister of  Agriculture and Regional Development, 375-
406 §.
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Stock breeders
7. Subsidy per unit or the total amount
The amount of the subsidy is 50 per cent of the costs.Payments under this programme amounted HUF 174 million during the period covered by the
notification.G/SCM/N/60/HUN
Page 41
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.3. Assistance to agriculture and forestry
3.3.1 Assistance to the preservation or development of biological bases and the modernisation of
related system of qualification
3.3.1.1 Assistance to genetic development
1. Title of the subsidy programme
Assistance to genetic development
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To assist the preservation or development of biological bases, the modernisation of related
systems of qualification and the participation of Hungary in international scientific organisations.
4. Background and authority for the subsidy
Decree 8/1999 (I. 20.) FVM of the Minister of  Agriculture and Regional Development, 92-98
§
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
The maximum amount of subsidy is 50 to 100 per cent of the costs.Payments under this programme amounted to HUF 622 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999G/SCM/N/60/HUN
Page 42
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.3.1.2 Assistance to the purchase and changes of breeding animals and to the expansion of their
stocks
1. Title of the subsidy programme
Assistance to the purchase and changes of breeding animals and to the expansion of their
stocks.
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To facilitate the acquisition of high-quality breeding animals and propagating materials.
4. Background and authority for the subsidy
Decree 8/1999 (I. 20.) FVM of the Minister of  Agriculture and Regional Development, 10-68.
§
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Stock breeders
7. Subsidy per unit or the total amount
For female animals:
For beef cow and mare for service: HUF 20,000 per female
For sheep and goat for service : HUF 1,200 per female
For breeding ewe and kid  for service HUF 6,000 per female
For pig for service: HUF 8,000 to 15,000 per female
For bees:
HUF 1,000 per family
HUF 850 per queen-bee
For poultry:
For chicken and "peking" type duck HUF 100 per female
For turkey and "barbarie" type duck HUF 200 per female
For goose and "mulard" type duck HUF 500 per femaleG/SCM/N/60/HUN
Page 43
For male animals:
For bull for service: HUF 50,000 to 100,000 per male.
For boar for service: HUF 10,000 to 25,000 per maleFor ram for service and he-goat for service: HUF 15,000 to 25,000
For seemen of cattle, sheep, goat and hog for using is HUF 200 to 800.
For artificial insemination of mare is HUF 35,000 per female.
Assistance to the special identification system  ENAR of the cattle is HUF 650 per capita.
Payments under this programme amounted to HUF 4,395 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.3.2. Assistance to the utilisation of arable lands in disadvantaged producing areas
Phased out
3.3.3 Assistance to investment in and developm ent of agricultural production and processing
Phased out
3.3.4. Assistance to mending, cultivating and preserving the quality and the quantity of forests
1. Title of the subsidy programme
Assistance to mending, cultivating and preserving the quality and the quantity of forests
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To facilitate afforestation, treatment and cultivation of young forests;► To reduce costs arising from provisional utilisation of forests, from afforestation
resulted from the change in use of land;
► To contribute to the costs of forest treatment of public interest;
► To contribute to the costs of operation of forest protection measuring and monitoring
systems arising from international obligations;G/SCM/N/60/HUN
Page 44
► To preserve the ecosystem, the ecological balance and physical condition of the
forests;
► To contribute to the costs of propagation of forest culture.
4. Background and authority for the subsidy
Decree 8/1999 (I. 20.) FVM of the Minister of  Agriculture and Regional Development, 214.-
231. §
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Sylviculturists
7. Subsidy per unit or the total amount
The amount of support is 50-80 per cent of the costs.
Payments under this programme amounted to HUF 3,673 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.3.5. Assistance to the establishment of sylviculturist and co-operative associations
Phased out
3.4. Assistance to game husbandry
1. Title of the subsidy programme
Assistance to game husbandry
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
► To protect and preserve natural stocks of the species hunted as game and of their
habitats;
► To protect and preserve natural stocks of special areas,G/SCM/N/60/HUN
Page 45
► To propagate hunting,
► regional game husbandry planning that is consistent with forestry plans;
► To contribute trophy evaluation;
► To provide services related to research and development if connected to or aiming at
achieving the objectives set out above;
► To facilitate activities in domestic or foreign markets or in the area of marketing if
connected to or aiming at achieving the objectives set out above.
4. Background and authority for the subsidy
Decree 8/1999 (I. 20.) FVM of the Minister of  Agriculture and Regional Development, 407.-
425. §
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Hunters, institutions, companies operating in the field of game husbandry
7. Subsidy per unit or the total amount
The maximum amount of support eligible per ap plicant is HUF 5 mill ion, but not more than
the 50 per cent of the value of the investment.
Payments under this programme amounted to HUF 568 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.5. Assistance to the protection of arable land
1. Title of the subsidy programme
Assistance to the protection of arable land
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To provide supplement for cultivable land to lower the unjustified decrease of land capable of
cultivation and to enhance different types of utilisation of land capable of cultivation as a sector with
constant changes.G/SCM/N/60/HUN
Page 46
− To facilitate utilisation of land capable of cultivation by re-utilisation of idle land, to develop
terraces for vineyards, to facilitate land concentration, elimination of decayed or damaged
orchards and vineyards, recultivation of fish ponds.
− Assistance to remote sensoring related to agriculture
− Assistance to international relations and studies in the field of land  concentration policy and
quality protection,
− Improvement of land quality of erosion prone cropland, inland waters, acidic, alkaline and
sand soil.
− Assistance to improve land registration
− Assistance to research related to quantitative and qualitative protection of cropland.
4. Background and authority for the subsidy
Decree 8/1999 (I.20.) FVM of the Minister of  Agriculture and Regional Development, 308.-
349. §
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers, institutions, companies engaged in quantitative and qualitative protection of
croplands and land concentration policy.
7. Subsidy per unit or the total amount
40 per cent of the costs related to the process of quickening the soil, preserving the quality of
land and the elaboration of projects in this regard,
40 per cent of the costs of research related to the quantitative and qualitative protection of
croplands
20 per cent of the cost of the land acquired in order to concentrate the land structure.
50 per cent of the cost of international relations and studies in the field of land concentration
policy and quality protection
Payments under this programme amounted to HUF 1,587 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/60/HUN
Page 47
3.6. Assistance to the construction and the renovation of buildings
Phased out
3.6.1 Assistance to the construction of buildings of "new type" co-operatives and organisations
working in the fishery and forestry sectors
1. Title of the subsidy programme
Assistance to the construction of buildings of  "new type" co-operatives and organisations
working in the fishery and forestry sectors
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To assist the construction of buildings.
4. Background and authority for the subsidy
Decree 8/1999 (I. 20.) FVM of the Minister of  Agriculture and Regional Development, 247.-
250. §
5. Form of the subsidy
Grant and interest subsidy
6. To whom and how the subsidy is provided
Purchasing, processing, and marketing co-operatives, sylviculturists and fish-producers
7. Subsidy per unit or the total amount
Grant
30 per cent of the cost of construction, maximum HUF 40 million.Interest subsidy:
40 per cent of the interest on the loan, maximum loan: HUF 150 million.Payments under this programme amounted to HUF 13,822 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/60/HUN
Page 48
3.6.2. Assistance to technology investments in the food industry
1. Title of the subsidy programme
Assistance to food industrial technology investments
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To assist certain technology investments in the food industry and to provide financial
assistance to the purchasing of new technological equipment necessary for the processing of certain
agricultural products.
4. Background and authority for the subsidy
Decree 8/1999 (I. 20..) FVM of the Minister of  Agriculture and Regional Development, 251.-
253. §, 267. §
5. Form of the subsidy
Grant and interest subsidy
6. To whom and how the subsidy is provided
Producers, processors
7. Subsidy per unit or the total amount
For technology investments:Interest subsidy:25 per cent of the cost of investment for the processing of fruit, vegetable, milk, honey, wine
40 per cent of the interest on the loan for investment, with the condition of own capital not less than
20 per cent of the investment
For investments used for the improvement of animal sanitary and food hygiene
25 per cent of the cost of the investment, 40 per cent interest subsidy on loans for investment
granted for more than one year
Payments under this programme amounted to HUF 11 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/60/HUN
Page 49
3.7. Assistance to the establishment of vineyards and orchards (and renewal of vineyards)
1. Title of the subsidy programme
Assistance to the establishment of vineyards and orchards and renewal of vineyards
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To establish new plantations (fruit and grape) and to renew old vineyards and orchards.
4. Background and authority for the subsidy
Decree 8./1999 (I.20.) FVM of the Minister of Agriculture and Regional Development, 254.-
258. §
5. Form of the subsidy
Grant
Interest subsidy
6. To whom and how the subsidy is provided
Owners and tenants of vineyards or orchards
7. Subsidy per unit or the total amount
Grants:
25 to 60 per cent of the different costs of establishment of vineyards and orchards, 5 per cent
extra subsidy for producers using environmentally-friendly "integrated" production technology.
Interest subsidy:
− 40 per cent of the interest on loans granted for maximum ten years, or;
− 70 per cent of the interest on loan for the first year, which is reduced by 10 per cent
annually until the seventh year, or;
− 40 per cent of the interest on loan for the first year, 50, 60 and 70 per cent of the
interest on loan for the next three years, and 50, 30 and 10 per cent of the interest on
loan for the last three years.
Payments under this programme amounted to HUF 1,611 million during the period covered
by the notification.G/SCM/N/60/HUN
Page 50
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.8. Regional assistance programmes
3.8.1. Assistance to the development of disadvantaged regions  
Phased out
3.8.2. Assistance to the inhabitants of settlements with less than 3 000 inhabitants living in
disadvantaged regions
Phased out
3.8.3. Additional assistance to certain counties in disadvantaged areas
1. Title of the subsidy programme
Additional assistance to certain counties in disadvantaged areas
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To compensate for regional disadvantages.
4. Background and authority for the subsidy
Decree 59/1999 (VII.13.) FVM of the Minister of Agriculture and Regional Development
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers located in Szabolcs- Szatmár- Bereg and Nógrád counties
7. Subsidy per unit or the total amount
15-20 per cent increase of the grant provided under the "3.7 Assistance to the establishment of
vineyards and orchards and renewal of vineyards"-programme.G/SCM/N/60/HUN
Page 51
30 per cent increase of the grant provided under the "3.6.1 Assistance to the construction of
buildings by"new type" co-operatives, and organisations working in the fishery and forestry sectors"-
programme.
20 per cent increase of the grant provided under the "4.1.3-4.1.4. Assistance to the purchase
and leasing of agricultural machinery" and "4.4. Assistance to soil melioration and to irrigation
investment" programme
The total cost of the investments determined above can not exceed HUF 15 million.50 per cent increase of the grant provided under the "3.3.1.2 Assistance to the purchase and
changes of breeding animals to the expansion of their stocks" and "4.11. Assistance to the utilisation
of advisory and extension services" programme
20 per cent increase of the grant provided under the "3.14. Assistance to the joint
establishment of wholesale markets by producers and to investments of joint sales organisations of
producers" programme
Payments under this programme amounted to HUF 147 million during the period covered by
the notification.
8. Duration of the subsidy
From 13 July to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.8.4. Assistance to the development of agro-tourism
1. Title of the subsidy programme
Assistance to the inhabitants of disadvantage d settlements with less than 10,000 inhabitants;
or inhabitants living outside of disadvantaged settlements with more than 10,000 inhabitants.
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To develop agro-tourism.
4. Background and authority for the subsidy
Decree 8/1999 (I. 20..) FVM of the Minister of  Agriculture and Regional Development, 292.-
298. §G/SCM/N/60/HUN
Page 52
5. Form of the subsidy
Grant
Maximum 40 per cent of the investment, training and advertisement cost
The maximum amount of the support is HUF 2 million per each project.
6. To whom and how the subsidy is provided
Residents establishing tourist accommodation
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 109 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.9. Assistance to foster co-operative integration
1. Title of the subsidy programme
Assistance to co-operatives and other economic operators engaged in the buying and selling
of products and providing services
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To encourage co-operative integration in the field of production, purchase and marketing.
4. Background and authority for the subsidy
Decree 8/1999 (I. 20.) FVM of the Minister of  Agriculture and Regional Development, 117.-
121. §
5. Form of the subsidy
Grant, interest subsidy
6. To whom and how the subsidy is provided
Agricultural co-operatives and other economic operators engaged in the buying and selling of
products and providing services.G/SCM/N/60/HUN
Page 53
7. Subsidy per unit or the total amount
80 per cent of the start up cost, maximum HUF 250,000 for agricultural co-operations.
20 per cent of the cost of operation, maximum HUF 15 million.
HUF 150,000 per hectare, maximum HUF 5 million for partnerships in the field of forestry.HUF 100,000 per member, maximum HUF 3 million for non-profit organisations providing
machinery service to agriculture
30 per cent of the cost of investment, maximum HUF 50 million for wholesale markets.
40 per cent of  interest on loan with limitation: the maximum credit is HUF 200 million.
Payments under this programme amounted to HUF 1,032 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.10. Assistance to the purchase of individual shares of members of co-operatives
Phased out
3.11. Assistance to the realisation of certain goals of the agricultural policy
3.11.1. Assistance to the realisation of certain goals of the agricultural policy
1. Title of the subsidy programme
Assistance to the realisation of certain goals of the agricultural policy
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To assist the development of the agricultural information network and rural development.
4. Background and authority for the subsidy
Decree 109/1997 (XII. 30.) §219 FM of  the Minister of Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Agricultural research institutesG/SCM/N/60/HUN
Page 54
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 1.5 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.11.2. Assistance to agricultural information network
1. Title of the subsidy programme
Assistance to the development of the agricultural information network
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To assist the development of the agricultural information network
4. Background and authority for the subsidy
Decree 8/1999 (I.20.) FVM of the Minister of  Agriculture and Regional Development, 438.-
441. §
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Agricultural Research and Information Institute
Producers, book-keeping offices
7. Subsidy per unit or the total amount
HUF 75,000 to 135,000 depending on the amount of total returnsPayments under this programme amounted to HUF 148 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999G/SCM/N/60/HUN
Page 55
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.11.3. Assistance to foreign training programmes
1. Title of the subsidy programme
Assistance to foreign training programmes
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
Assistance to foreign training programmes
4. Background and authority for the subsidy
Decree 8/1999 (I. 20.) FV of the Minister of  Agriculture and Regional Development, 433.-
437. §
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Young agricultural experts
7. Subsidy per unit or the total amount
Up to 50  per cent of the costs of travel, accommodation and training programmes.Payments under this programme amounted to HUF 58 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/60/HUN
Page 56
3.11.4. Assistance to agricultural research and development of non-profit organisations
1. Title of the subsidy programme
Assistance to agricultural research and development of non-profit organisations founded by
the Minister of Agriculture and Regional Development
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
Assistance to non-profit organisations related to agricultural research and development
activities
4. Background and authority for the subsidy
Decree 8/1999 (I.20.) FVM of the Minister of  Agriculture and Regional Development, 442.-
444. §
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Non-profit organisations with research and development activities
7. Subsidy per unit or the total amount
100 per cent of the costsPayments under this programme amounted to HUF 243 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.11.5. Assistance to purchasing state-of-the-art technical equipment for institutions engaged in
agricultural research and development
1. Title of the subsidy programme
Assistance to purchasing state-of-the-art technical equipment for institutions engaged in
agricultural research and development.G/SCM/N/60/HUN
Page 57
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
Assistance to purchasing technical equipment for agricultural research and development
4. Background and authority for the subsidy
Decree 8/1999 (I. 20.) FVM of the Minister of  Agriculture and Regional Development, 280.-
286. §
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Agricultural research institutes
7. Subsidy per unit or the total amount
70  per cent of the costPayments under this programme amounted to HUF 329 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.12 Assistance to common marketing in agriculture
1. Title of the subsidy programme
Assistance to common marketing in agriculture
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To co-finance the participation on international fairs.
Promotion of Hungarian agricultural products.
Assistance to market research with advanced methods.G/SCM/N/60/HUN
Page 58
4. Background and authority for the subsidy
Decree 109/1997 (I. 20) FM of the Minister for Agriculture
Decree 8/1999 (I. 20) FM of the Minister for Agriculture and Regional Development
7. Subsidy per unit or the total amount
Maximum 50 per cent of the costs.
Payments under this programme amounted to HUF 2,008.9  million during the period covered
by the notification.
8. Duration of the subsidy
From 1 January 1998  to 25 February 2000
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
3.13. Agricultural research programmes
Phased out
3.14. Assistance to the joint establishment of wholes ale markets by producers and to investments of
joint sales organisations of producers
Phased out
4.1. Finance subsidies
4.1.1. Assistance given to further agricultural activities
Phased out
4.1.2. Government guarantee
Phased out
4.1.3-4.1.4. Assistance to the purchase and leasing of agricultural machinery
1. Title of the subsidy programme
Assistance to the purchase and leasing of agricultural machinery
2. Period covered by the notification
1999G/SCM/N/60/HUN
Page 59
3. Policy objective and/or purpose of the subsidy
To assist the producers in financing their purchase or leasing of agricultural machinery.
4. Background and authority for the subsidy
Decree 8/1999 (I. 20.)  FVM of the Minister of Agriculture and Regional Development, 259.-
266. §
5. Form of the subsidy
Grant and interest subsidy
6. To whom and how the subsidy is provided
Producers, leasing companies and entrepreneurs providing services to agriculture with
agricultural machinery
7. Subsidy per unit or the total amount
In the case of purchase:
25 per cent of the actual purchase price or 40 per cent of the interest on related bank loan
granted for more than one year.
Requirement: minimum 20 per cent own capital of the investment cost
In the case of leasing:
25 per cent of the actual purchase price for the leasing company
40 per cent of the interest on the related bank loans for the user of the leased agricultural
machinery.
Assistance is provided for leasing contracts of at least 3 years.
Payments under this programme amounted to HUF 10,751 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.1.5. Assistance to members of co-operatives in acquiring loans
Phased outG/SCM/N/60/HUN
Page 60
4.1.6. Interest rate subsidy for bank loans for maximum one year, and for more than one year,
government guarantee
1. Title of the subsidy programme
Interest subsidy for loans of current assets
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To assist producers in financing their costs of input materials.
4. Background and authority for the subsidy
Decree 8/1999 (I.20.) FVM of the Minister fo r Agriculture and Regional Development, 69.-
85. §
5. Form of the subsidy
Interest subsidy
Government guarantee
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Interest rate subsidy for bank loans for maximum one year:
The interest rate subsidy is 40 per cent for loans given in HUF.
The interest rate subsidy is 30 per cent for loans given in foreign currency.
In case of a natural disaster, extra interest rate subsidy of 25 per cent is given for loans in
HUF, 15 per cent for loans in foreign currency.
Government guarantee:
Producers of wheat, maize, rye, barley are entitled to claim Government guarantee for up to
70 per cent of loans or maximum HUF 20,000 per hectare.
Interest rate subsidy of the  bank loans for at least four years but maximum six years:
The maximum amount of the loan can be HUF 100 million.the interest rate subsidy is 50 per cent in the first year,
the interest rate subsidy is 70 per cent in the second year,the interest rate subsidy is 50 per cent in the third year,
the interest rate subsidy is 40 per cent in the fourth year,
the interest rate subsidy is 20 per cent in the fifth  year,
the interest rate subsidy is 10 per cent in the sixth year.G/SCM/N/60/HUN
Page 61
Government guarantee:
80 per cent for loans up to HUF 5 million.
60 per cent for loans over HUF 5 million
Payments under this programme amounted to HUF 13,242 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.1.7. Interest subsidy for purchasing grain seed with quality assurance necessary for the 1999
sowing
1. Title of the subsidy programme
Interest subsidy for purchasing wheat, barley, rye, triticale-seed
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To assist producers in financing their costs of seed
4. Background and authority for the subsidy
Decree 70/1999 (VIII. 26.) FVM of the Minister for Agriculture and Regional Development
5. Form of the subsidy
Interest subsidy
6. To whom and how the subsidy is provided
Seed wholesalers, retailers
7. Subsidy per unit or the total amount
The interest rate subsidy is 100 per cent on loan for seed purchase, maximum 250 kg per
hectare for wheat seed, 200 kg per hectare for other seeds, maximum price HUF 38,100 per tonnes forwheat seed and HUF 34,300 per tonnes for other seeds.
Payments under this programme amounted to HUF 3 million during the period covered by the
notification.G/SCM/N/60/HUN
Page 62
8. Duration of the subsidy
From 26 August to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.1.8. Government guarantee for a HUF 16 billion loan given to small companies in the canning
sector
1. Title of the subsidy programme
Government guarantee for loans given to small companies in the canning sector
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To facilitate the access of small companies in the canning sector to loans, in order to solve the
financial difficulties caused by the falling back of export to the Russian market
4. Background and authority for the subsidy
Decree 57/1999 (VI.18.) FVM of the Minister for Agriculture and Regional Development
5. Form of the subsidy
Government guarantee
6. To whom and how the subsidy is provided
Processors
7. Subsidy per unit or the total amount
Government guarantee for 100 per cent of the loan.Payments under this programme amounted to HUF 17 million during the period covered by
the notification.
8. Duration of the subsidy
From 18 July to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/60/HUN
Page 63
4.2. Assistance to the production of certain agricultural products
 Phased out4.3. Assistance to the restructuring of the agricultural sector
1. Title of the subsidy programme
Assistance to the restructuring of the agricultural sector
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
(A) To facilitate the organizational and structural adaptation of the agricultural sector.(1) To provide investment loans by banks for the purchase of assets of agricultural co-operatives
or companies provided that these goods are used by the economic operator for agricultural or
forestry production or for processing or services relating to agriculture and forestry;
(2) To provide investment loans by banks for the purchase of assets of companies established as a
result of transformation of state farms, agricultural complexes or forest exploitations provided
that these goods are used for agricultural or forestry production and that no privatisation loan
or other advantage is available for subsidising the interest;
(3) To provide loans of more than one year for the operation of assets referred to under items 1)
and 2) above.
Assets referred to above include the followin g: real estates (excluding arable lands and
residential real estates) equipment, machinery, lorries and trucks and other equipment.
(B) To provide additional assistance:
(1) To individual producers that have started their enterprises not earlier than one year before
applying for the support under (A) above;
(2) to producers operating in economically underdeveloped regions to the financing of their
development projects.
4. Background and authority for the subsidy
Decree 8/1999 (I. 20.) FVM of the Minister of  Agriculture and Regional Development, 426.-
431. §
5. Form of the subsidy
Grant
Interest subsidyG/SCM/N/60/HUN
Page 64
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 823 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.4. Assistance to soil melioration and to irrigation investment
1. Title of the subsidy programme
Assistance to soil melioration and to irrigation investment
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
(A) To help landholders and water management associations maintain and improve the fertility of
arable lands and facilitate the security of production.
(B) To assist holders in the financing of their melioration development projects.
(C) To provide additional assistance to holders by financing bank loans of more than one year
granted for soil conservation, country planning and the realisation of water supply and
irrigation facilities.
4. Background and authority for the subsidy
Decree 8/1999 ( I. 20.) FVM of the Minister of Agriculture and Regional Development, 299.-
307. §
5. Form of the subsidy
Grants (in the case of soil melioration)
Interest subsidy (in the case of irrigation investment)
6. To whom and how the subsidy is provided
ProducersG/SCM/N/60/HUN
Page 65
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 1,459 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.5. Assistance for planting and restructuring forests and afforestation
1. Title of the subsidy programme
Assistance for planting and restructuring forests and afforestation
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To provide assistance to planting and restructuring forests and afforestation.
4. Background and authority for the subsidy
Decree 8/1999 (I. 20.) FVM of the Minister of  Agriculture and Regional Development, 204.-
213. §
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Sylviculturists
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 2,054 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/60/HUN
Page 66
4.6. Payments for relief from environmental degradation of forests
1. Title of the subsidy programme
Payments for relief from environmental degradation of forests
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To compensate for losses of income due to the environmental degradation of forests.
4. Background and authority for the subsidy
Decree 8/1999 ( I. 20.) FVM of the Minister of Agriculture and Regional Development, 242.-
245. §
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Owners and tenants of forests
7. Subsidy per unit or the total amount
HUF 600 per gross cubic metre of timberPayments under this programme amounted to HUF 236 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.7. Refund of the consumption tax on diesel fuel
1. Title of the subsidy programme
Refund of the consumption tax on diesel fuel
2. Period covered by the notification
1999G/SCM/N/60/HUN
Page 67
3. Policy objective and/or purpose of the subsidy
To reduce the tax burden of producers.
4. Background and authority for the subsidy
Decree 216/1997 (XII. 1) Korm of the Government
5. Form of the subsidy
Tax refund
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Refund of 70 per cent of the consumption tax on diesel fuel.
Payments under this programme amounted to HUF 10,000 million during the period covered
by the notification.
8. Duration of the subsidy
Starting date: 1 January 1998
Duration has not been specified.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.8. Assistance to the participation in insurance schemes
1. Title of the subsidy programme
Assistance to the participation in insurance schemes
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To promote the enrolment of producers in insurance schemes.
4. Background and authority for the subsidy
Decree 8/1999 (I. 20.) FVM of the Minister of  Agriculture and Regional Development, 151.-
157. §G/SCM/N/60/HUN
Page 68
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
30 per cent of the insurance premium.
Payments under this programme amounted to HUF 2,572 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.9. Payments for relief from natural disasters
4.9.1. Payments for relief from natural disasters affecting plant cultivation in 1995
Phased out
4.9.2. Payments for relief from fireblight disease
Phased out
4.9.3. Payments for relief from natural disasters affecting plant cultivation in 1997
Phased out
4.9.4. Payments from relief from natural disasters not covered by insurance policies
1. Title of the subsidy programme
Natural disasters not covered by insurance policies
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To provide relief from damage of natural disasters.G/SCM/N/60/HUN
Page 69
4. Background and authority for the subsidy
Decree 109/1997 (XII.30.) FM of the Minister of Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
The amount of subsidy depends on the type of damage, the production loss, the additional
costs related to plant protection and the area affected by the disaster.
Payments under this programme amounted to HUF 260 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.9.5. Assistance to provide relief from the damage  caused by the extraordinary weather conditions
in June and July 1999
1. Title of the subsidy programme
Assistance to provide relief from the damage caused by the extraordinary weather conditions
in June and July 1999
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
Assistance to provide relief from the damage caused by the extraordinary weather conditions
in June and July 1999
4. Background and authority for the subsidy
Decree 75/1999 (IX. 1.) FVM of the Minister  of Agriculture and Regional Development
5. Form of the subsidy
GrantG/SCM/N/60/HUN
Page 70
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Grant for damage caused by flood and internal water:
HUF 20,000 to 23,000 per hectare for wheat
HUF 19,000 to 22,000 per hectare for barley
HUF 20,000 per hectare for triticale, rye and oatHUF 25,000 per hectare for rape (canola)
HUF 25,000 per hectare for pea (seed)
HUF 17,000 per hectare for maize
HUF 25,000 per hectare for sunflower and sugar beet
Grant for damage caused by hail:
HUF 3,000 per hectare
Grant for losses, damage of quality and losses in plantations
HUF 100,000 per hectare for green pepper, tomato, melon, cucumber
HUF 50,000 per hectare for other vegetables
HUF 150,000 per hectare for vegetable production in green houses
HUF 100,000 per hectare for vineyards and orchards:
Grant for losses of breeding animals:
HUF 100,000 to 220,000 per animal for cattle (beef, dairy, heifers)
HUF 30,000 to 35,000 per animal for pig
HUF 18,000 per animal for sheep
HUF 900 to 3,500 per animal for poultry
Grant for losses of other animals:
HUF 145 to 165 per kilogram for cattle
HUF 3,000 to 5,000 per animal, HUF 193 per kilogram for pigHUF 400 to 500 per kilogram for sheep
HUF 160 to 280 per kilogram for poultry
Payments under this programme amounted to HUF 2,429 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 September to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/60/HUN
Page 71
4.9.6 Assistance to provide relief from the damage caused by flood and internal water occurred in
1999
1. Title of the subsidy programme
Assistance to provide relief from the damage caused by flood and internal water occurred in
1999
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
Assistance to provide relief from the damage caused by flood and internal water occurred in
1999
4. Background and authority for the subsidy
Decree 55/1999 (VI.16.) FVM of the Minister of Agriculture and Regional Development
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Grant for damage caused by flood and internal water:
HUF 6,000 per hectare, for green fertilisation additional HUF 2,000 per hectareGrant for losses:
HUF 4,000 to 8,000 per hectare
Payments under this programme amounted to HUF 1,377 million during the period covered
by the notification.
8. Duration of the subsidy
From 16 June to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/60/HUN
Page 72
4.9.7. Assistance to the intervention of unharvested sugar beet
1. Title of the subsidy programme
Assistance to the intervention of unharvested sugar beet
2. Period covered by the notification
1999
3. Policy objective and /or purpose of the subsidy
To compensate for the losses caused by the unfavourable weather
4. Background and authority for the subsidy
Decree 28/1999. (III. 18.) FVM  of the Minister for Agriculture and Regional Development
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
The amount of subsidy  is HUF 20 000 per ha.
Payments under this programme amounted to HUF 25.4  million during the period covered by
the notification.
8. Duration of the subsidy
From 18 March to 30 May 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.10. Assistance to the organisation of wine-growing communities
Phased out
4.11. Assistance to the utilisation of advisory and extension services
1. Title of the subsidy programme
Assistance to the utilisation of advisory and extension services
2. Period covered by the notification
1999G/SCM/N/60/HUN
Page 73
3. Policy objective and/or purpose of the subsidy
To promote the use of advisory and extension services.
4. Background and authority for the subsidy
Decree 8/1999 (I. 20.) FVM of the Minister of  Agriculture and Regional Development, 100.-
116. §
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
25 to 75 per cent of advisory fee based on the turnover of producers
75 per cent for young farmers (aged under 40)
maximum HUF 50,000 to 100,000 per year
50 per cent of advisory fee for sylviculturists
maximum grant: the amount of the minimum minimum wage effectual at the time of the
contract
maximum 50 per cent of the costs of training
maximum 50 per cent of the costs of the publications
100 per cent of the costs of the development of advisory information technology.
Payments under this programme amounted to HUF 490 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.12. Assistance to the "Borsod-Abaúj-Zemplén" region
Phased out
4.13. Assistance to the maintenance of recreational and park woods
1. Title of the subsidy programme
Assistance to the maintenance of recreational and park woodsG/SCM/N/60/HUN
Page 74
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To co-finance the costs of maintaining forest faci lities such as botanical gardens, parking lots,
green corridors and hiking paths.
4. Background and authority for the subsidy
Decree 8/1999 (I.20.) FVM of the Minister of  Agriculture and Regional Development, 236-
241. §
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Operators of forest facilities
7. Subsidy per unit or the total amount
10 per cent of the investment costs.
Payments under this programme amounted to HUF 98 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.14. Assistance to tobacco harvested in 1995
1. Title of the subsidy programme
Assistance to tobacco harvested in 1995
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To re-establish the equilibrium between domestic supply and demand.G/SCM/N/60/HUN
Page 75
4. Background and authority for the subsidy
Decree 15/1996 (V.30.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
HUF 7.7-15 per kg according to the type of tobacco
Payments under this programme amounted to HUF 12.8 million during the period covered by
the notification.
8. Duration of the subsidy
From 7 June 1996 to 13 August 1998.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.15. Assistance to potatoes harvested in 1996
Phased out
4.16. Assistance to stabilise the egg market
1. Title of the subsidy programme
Assistance to stabilise the egg market
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To re-establish the equilibrium between domestic supply and demand.
4. Background and authority for the subsidy
8/1999 (IV.8.) FM of the Minister for Agriculture
5. Form of the subsidy
GrantG/SCM/N/60/HUN
Page 76
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
HUF 300-500 per laying hen
The eligible quantity is 300 000-500 000 piecesPayments under this programme amounted to HUF 158.7 million during the period covered
by the notification.
8. Duration of the subsidy
From 20 January 1999 to 25 February 2000
9. tatistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.17 Intervention support for quality production of game birds
Phased out
4.18 Assistance to beekeepers
The description of the measure can be found under 4.42.
4.19. Assistance to the establishment of environmentally friendly crop structure
Phased out
4.20. Assistance to the transition to organic production
1. Title of the subsidy programme
Assistance to the transition to organic production
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To promote organic production
4. Background and authority for the subsidy
Decree 8/1999 ( I. 20.) FVM of the Minister of Agriculture and Rural Development, 445.-
452. §G/SCM/N/60/HUN
Page 77
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Grant for the period of transition, maximum three years.100 per cent of the costs of plant and soil test, quality control
40 per cent of the costs of organic fertiliser, special plant protection chemicals, quality seeds
Payments under this programme amounted to HUF 33 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.21. Assistance to stabilisation of the cereal market
1. Title of the subsidy programme
Assistance to stabilisation of the cereal market
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To prolong the period of sale in order to establish better market conditions and prices, to
facilitate access to bank loans.
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister of  Agriculture; Decree 109/1997 (I.18.) FM of the
Minister of Agriculture; Decree  46/1997 (VI. 25.) FM of the Minister of Agriculture; and Decree
72/1997 (X.21.) FM of the Minister of Agriculture
5. Form of the subsidy
Grant
Interest subsidyG/SCM/N/60/HUN
Page 78
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Interest subsidy to cover 70 per cent of the cost for producers who placed their crop in public
storage.
Storage support: HUF 10 per ton per week
Payments under this programme amounted to HUF 68.9 million during the period covered by
the notification.
8. Duration of the subsidy
From 18 January 1997 to 19 January 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.22. Intervention assistance to producers of wheat for feeding purposes for selling their crop
Phased out
4.23. Assistance to the maintenance and development of the statistical data-bases of producers’
councils
1. Title of the subsidy programme
Assistance to the maintenance and development of the statistical data-bases of producers’
councils
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
Statistical monitoring of the agricultural sector.
4. Background and authority for the subsidy
Decree 109/1997 (XI. 30.) FM of the Minister  of Agriculture; Decree 8/1999 (I. 20.) FVM of
the Minister of Agriculture and Regional Development
5. Form of the subsidy
GrantG/SCM/N/60/HUN
Page 79
6. To whom and how the subsidy is provided
Producers’ councils
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 96.8 million during the period covered by
the notification.
8. Duration of the subsidy
From 18 January 1997 to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.24. Assistance to the improvement of competitiveness
1. Title of the subsidy programme
Assistance to the improvement of competitiveness
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To improve competitiveness
4. Background and authority for the subsidy
Decree 3/1997 (I. 18.) FM of the Minister of Agriculture
5. Form of the subsidy
Grant
Interest subsidy
6. To whom and how the subsidy is provided
Processors
7. Subsidy per unit or the total amount
Grant: 30 per cent of the cost of the export credit insurance
Interest subsidy: 40  per cent in the case of national currency loan, and 30  per cent in the case
of foreign currency loanG/SCM/N/60/HUN
Page 80
Payments under this programme amounted to HUF 30.1 million during the period covered by
the notification.
8. Duration of the subsidy
From 18 January to 31 December 1997
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.25. Assistance to the reduction of costs relating to the rental of agricultural land
Phased out
4.26. Assistance to socially disadvantaged agricultural communities
1. Title of the subsidy programme
Assistance to socially disadvantaged agricultural communities
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To provide assistance to socially disadvan taged agricultural communities for local family
farming.
4. Background and authority for the subsidy
Decree 8/1999 (I. 20.) FVM of the Minister of  Agriculture and Regional Development, 135.-
141. §
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Local governments
7. Subsidy per unit or the total amount
50 per cent of the cost of purchasing seed, breeding animals, propagating material.
Payments under this programme amounted to HUF 15 million during the period covered by
the notification.G/SCM/N/60/HUN
Page 81
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.27. Assistance to the construction and modernisation of rural roads
1. Title of the subsidy programme
Assistance to the construction and modernisation of rural roads
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
 To enhance the access to local farms.4. Background and authority for the subsidy
Decree 8/1999 (I. 20.) FVM of the Minister of  Agriculture and Regional Development, 268. §
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Local governments
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 200 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/60/HUN
Page 82
4.28. Assistance to the service of field wardens
1. Title of the subsidy programme
Assistance to the service of field wardens
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To ensure the establishment and efficient operation of field wardens.
4. Background and authority for the subsidy
Decree 8/1999 (I. 20.) FVM of the Minister of  Agriculture and Regional Development, 142.-
148. §
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Local governments
7. Subsidy per unit or the total amount
Grant for establishment: maximum HUF 260,000 per service area
Grant for operation: 50 per cent of the cost of service, maximum HUF 28,500 per service areaPayments under this programme amounted to HUF 168 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.29. Assistance to young farmers
1. Title of the subsidy programme
Assistance to young farmers
2. Period covered by the notification
1999G/SCM/N/60/HUN
Page 83
3. Policy objective and/or purpose of the subsidy
 To encourage the agricultural activities of young farmers.
4. Background and authority for the subsidy
Decree 8/1999 (I. 20.) FVM of the Minister of  Agriculture and Regional Development, 127.-
134. §
5. Form of the subsidy
Grant
Interest subsidy
6. To whom and how the subsidy is provided
Producers under the age of 40
7. Subsidy per unit or the total amount
Grant: 30 per cent of the purchase price or investment cost of buying land, on-farm facilities,
animals
The maximum amount of grant per farmer is HUF 15 million.Interest subsidy: 80 per cent of the basic interest rate of the National Bank of Hungary on
loans up to HUF 30 million received for the above-mentioned purposes.
Payments under this programme amounted to HUF 832 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.30. Assistance to agricultural employment
Phased out$
4.31 Assistance to the school milk programme
1. Title of the subsidy programme
Assistance to the school milk programmeG/SCM/N/60/HUN
Page 84
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To encourage milk consumption in order to improve the nutritional intake in socially
disadvantaged regions.
4. Background and authority for the subsidy
Decree 13/1999 (II. 1.) FVM of the Minister of Agriculture and Regional Development
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Milk Producers’ Council
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 1,000 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 February to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.32. Assistance to the purchasing of the required amount of the maize for feeding purposes
1. Title of the subsidy programme
Assistance to the purchasing of the required amount of maize for feeding purposes
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To support the storage of purchased maize for feeding purposes.
4. Background and authority for the subsidy
Decree 49/1998 (XI. 4.) FVM  of the Minister  of Agriculture and Regional Development
Decree 18/1999 (II. 12.) FVM  of the Minister  of Agriculture and Regional DevelopmentG/SCM/N/60/HUN
Page 85
5. Form of the subsidy
Interest subsidy
Grant
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Interest subsidy: 100 per cent of the basic interest rate of the National Bank of Hungary
Storage support: HUF 15 per ton per week
Payments under this programme amounted to HUF 624.8 million during the period covered
by the notification.
8. Duration of the subsidy
From 4 November to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.33 Additional assistance to the storage of maize harvested in 1998 for feeding purposes in public
warehouses
1. Title of the subsidy programme
Assistance to the storage of maize harvested in 1998 for feeding purposes                  in public
warehouses
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To ensure an adequate level of  domestic supply.
4. Background and authority for the subsidy
Decree 44/1998 (X. 28.) FVM  of the Minister of Agriculture and Regional Development
5. Form of the subsidy
Interest subsidy
GrantG/SCM/N/60/HUN
Page 86
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Interest subsidy of 100 per cent of the basic interest rate of the National Bank of Hungary on
loans which have the stored commodity as collateral.
Storage support: HUF 15 per ton per week for a period of maximum one year.
Payments under this programme amounted to HUF 142.4 million during the period covered
by the notification.
8. Duration of the subsidy
From 28 October 1998 to 19 January 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.34. Wheat exchange transaction
1. Title of the subsidy programme
Wheat exchange transaction
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To ensure the quality of the wheat to be harvested in 1999.
4. Background and authority for the subsidy
Decree 30/1998 (X. 1.) FVM  of the Minister of Agriculture and Regional Development
5. Form of the subsidy
Interest subsidy
Grant
6. To whom and how the subsidy is provided
ProducersG/SCM/N/60/HUN
Page 87
7. Subsidy per unit or the total amount
Producers operating on less than 50 ha are entitled to exchange their wheat for seed in the
value of HUF 8,000 per ha.
Producers operating on more than 50 ha are entitled to exchange their wheat for seed in the
value of HUF 3,200 per ha.
The transaction price of wheat varies between HUF 13,000 and HUF 18,000 according to
quality.
The transaction price of seed is HUF 32,000 per ton (HUF 36,000, if dressed).Payments under this programme amounted to 2.8 million HUF during the period covered by
the notification.
8. Duration of the subsidy
From 1 October 1998 to 1 October 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.35. Assistance to the purchase of wheat seed for the 1998 autumn sowing
Phased out
4.36. Interest subsidy to loans received for the purchase of apple in bulk harvested in 1997 for
processing purposes
1. Title of the subsidy programme
Interest subsidy to loans received for the purchase of apple in bulk harvested in 1997 for
processing purposes
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To re-establish the equilibrium between domestic supply and demand.
4. Background and authority for the subsidy
Decree 105/1997 (X.11.) FM of the Minister for Agriculture as amended by 52/1998 (VI.26.)
FM of the Minister for Agriculture
5. Form of the subsidy
Interest subsidyG/SCM/N/60/HUN
Page 88
6. To whom and how the subsidy is provided
Processors
7. Subsidy per unit or the total amount
Interest subsidy of 70 per cent on loans received for purchasing apple in bulk.
Payments under this programme amounted to HUF 75.9 million during the period covered by
the notification.
8. Duration of the subsidy
From 17 December 1997 to 30 August 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.37.  Interest subsidy on loans received for the purchase of apple in bulk harvested in 1998
1. Title of the subsidy programme
Interest subsidy on loans received for the purchase of apple in bulk harvested in 1998
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To re-establish the equilibrium between domestic supply and demand.
4. Background and authority for the subsidy
Decree 27/1998 (IX.18.) FVM of the Minister for Agriculture and Regional Development
5. Form of the subsidy
Interest subsidy
6. To whom and how the subsidy is provided
Processors
7. Subsidy per unit or the total amount
Interest subsidy:  100 per cent of the basic interest rate of the National Bank of Hungary on
loans received for the purchase of apple in bulk.G/SCM/N/60/HUN
Page 89
Payments under this programme amounted to HUF 192.6 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 September 1998 to 1 April 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.38. Intervention assistance to the selling of wheat for feeding purposes
1. Title of the subsidy programme
Intervention assistance to the selling of wheat for feeding purposes
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To ensure an adequate level of feed stuff.
4. Background and authority for the subsidy
Decree 38/1998 (V. 22.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producer, who sells its produce to domestic users
7. Subsidy per unit or the total amount
HUF 1500 per tonPayments under this programme amounted to HUF 1.2 million during the period covered by
the notification.
8. Duration of the subsidy
From 22 May 1998 to 31 August 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/60/HUN
Page 90
4.39. Market intervention related to duck production
1. Title of the subsidy programme
Market intervention related to duck production
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To re-establish the equilibrium between domestic supply and demand.
4. Background and authority for the subsidy
54/1998 (VI.26.) FM of the Minister for Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
HUF 76 per piece
Payments under this programme amounted to HUF 13.1 million during the period covered by
the notification.
8. Duration of the subsidy
From 26 June to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.40. Quality-linked support to the production of sugar beet
1. Title of the subsidy programme
Quality-linked support to the production of sugar beet
2. Period covered by the notification
1999G/SCM/N/60/HUN
Page 91
3. Policy objective and/or purpose of the subsidy
To improve the quality of production.
4. Background and authority for the subsidy
Decree 48/1998 (XI.4.) FVM of the Minister for Agriculture and Regional Development;
Decree 27/1999. (III.18.) FVM of the Minister for Agriculture and Regional Development
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
The amount of subsidy is HUF 10 000 per ha
Payments under this programme amounted to HUF 385.5 during the period covered by the
notification.
8. Duration of the subsidy
From 4 November 1998 to 31 May 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.41. Emergency income support to certain producers of cereals
1. Title of the subsidy programme
Emergency income support to certain producers of cereals
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To dissuade producers from offering their produce for intervention purchase.
4. Background and authority for the subsidy
Decree 42/1998. (X. 28.) FVM of the Minister for Agriculture and Regional DevelopmentG/SCM/N/60/HUN
Page 92
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers who disclaim the right of the intervention at guaranteed price
7. Subsidy per unit or the total amount
HUF 3 000 per ton
Payments under this programme amounted to HUF 3,943 million during the period covered
by the notification.
8. Duration of the subsidy
From 16 July 1998 to 1 October 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.42. Assistance to reduce certain sanitary and phytosanitary costs
1. Title of the subsidy programme
Assistance to reduce certain sanitary and phytosanitary costs.
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To reduce sanitary and phytosanitary costs.
4. Background and authority for the subsidy
Decree 76/1997 (X.31.) FM of the Minister for Agriculture
Decree 109/1997. (XII. 30.) §200, §204, §208, §213 and FM of the Minister of Agriculture
Decree 39/1998. (V.22)  FM of the Minister of Agriculture
Decree 8/1999. (I.20.) §176,§180,§184,§186,§188, §191-194, FVM of the Minister of
Agriculture and Regional Development
Decree 69/1999. (VIII.26.) FVM of the Minister of Agriculture and Regional Development
5. Form of the subsidy
GrantG/SCM/N/60/HUN
Page 93
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Sanitary cost compensation:
medical costs of bee coloni es Maximum HUF 1000 per colony
vaccination for pig for slaughter  HUF 1300 per animal
pig for slaughter HUF 84 per animal
cattle for slaughter HUF 275 per animalpoultry for slaughter HUF 1 per kg
rabbit for slaughter HUF 1800 per ton
game HUF 60-120 per kg
duck HUF 20 per animal
goose HUF 33 per animal
Phytosanitary cost compensation:
seed production 50 per cent of the phytosanitary costs
grain, maize, flour and feed stuffs 75 per cent of the phytosanitary costsarable, horticultural areas and nurseries 50 per cent of the phytosanitary costs
propagating material of forestry tree species 70 per cent of the phytosanitary costsPayments under this programme amounted to HUF 2 673 million during the period covered
by the notification.
8. Duration of the subsidy
From 31 October 1997 to 25 February 2000
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.43. Assistance to the production of sowing seed
1. Title of the subsidy programme
Assistance to the production of sowing seed
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To reduce the cost of the sowing seed production.
4. Background and authority for the subsidyG/SCM/N/60/HUN
Page 94
Decree 109/1997 (XII. 30.)  FM of  the Minister of Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
50 per cent of the cost of qualificationPayments under this programme amounted to HUF 69.6 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1998
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.44. Assistance to the purchase of the required amount of cereals for feeding and of wheat for
milling purposes
1. Title of the subsidy programme
Assistance to the purchasing of the required amount of cereals for feeding and of wheat for
milling purposes
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To ensure an adequate supply of grain for feeding and wheat for milling purposes.
4. Background and authority for the subsidy
Decree 57/1998 (VII.7.) FM of the Minister of Agriculture as amended by 11/1998 (VIII.7)
FVM of  the Minister of Agriculture and Regional Development; 19/1999(II.12) FVM of  the Minister
of Agriculture and Regional Development
5. Form of the subsidy
Grant
Interest subsidyG/SCM/N/60/HUN
Page 95
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Interest subsidy of 100 per cent of the basic interest rate of the National Bank of Hungary.
Storage support: HUF 15 per ton per week
Payments under this programme amounted to HUF 1033.4 million during the period covered
by the notification.
8. Duration of the subsidy
From 7 July to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.45. Assistance to the storage in public warehouse of wheat harvested in 1998
1. Title of the subsidy programme
Assistance to the storage in public warehouse of wheat harvested in 1998
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To ensure an adequate level of supply.
4. Background and authority for the subsidy
Decree 2/1998 (VII. 16.) FVM  of the Minister  of Agriculture and Regional Development
5. Form of the subsidy
Grant
Interest subsidy
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Interest subsidy:
60 per cent for wheat for human consumptionG/SCM/N/60/HUN
Page 96
100  per cent for wheat for feeding purposes
Storage support: HUF 15 per ton per week
Payments under this programme amounted to HUF 417.8 million during the period covered
by the notification.
8. Duration of the subsidy
From 16 July 1998 to 19 January 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.46. Assistance to introduce the HACCP system of quality management
1. Title of the subsidy programme
Assistance to introduce the HACCP system of quality management
2. Period covered by the notification
1999
4. Background and authority for the subsidy
Decree 109/1997. (XII.30.) FM of the Minister  for Agriculture; Decree 8/1999 (I.20.) § 171.
FVM of the Minister for Agriculture and Regional Development
6. To whom and how the subsidy is provided
Companies in the retail or wholesale business
7. Subsidy per unit or the total amount
Maximum 50 per cent of the costs
Payments under this programme amounted to HUF 215.2 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 January 1998 to 25 February 2000
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/60/HUN
Page 97
4.47. Intervention support to maintain the EU approved level of hygiene of pig and cattle
slaughterhouses
Phased out
4.48. Assistance to organisations producing and selling fruit and vegetables
1. Title of the subsidy programme
Assistance to organisations producing and selling fruit and vegetables
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
Assistance to organisations producing and selling fruit and vegetables
4. Background and authority for the subsidy
Decree 8/1999 (I. 20.) FVM of the Minister of  Agriculture and Regional Development, 122.-
126. §
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Organisations producing and selling fruit and vegetables
7. Subsidy per unit or the total amount
5 per cent of the turnover up to HUF 250 million
2.5 per cent of the turnover over HUF 250 million
Maximum grant HUF 25 million per organisation
No payments under this programme during the period covered by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/60/HUN
Page 98
4.49. Assistance to research and to development of co-operatives
1. Title of the subsidy programme
Assistance to research and to development of co-operatives
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
Assistance to research and to development of co-operatives
4. Background and authority for the subsidy
Decree 8/1999 (I. 20.) FVM of the Minister of  Agriculture and Regional Development, 149.-
150. §
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Institutes, organisations, foundations with activities in development of co-operatives
7. Subsidy per unit or the total amount
50 per cent of the cost of research and development of co-operatives
Payments under this programme amounted to HUF 700 000 during the period covered by the
notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.50. Assistance to programmes of development of agricultural structure and rural areas
1. Title of the subsidy programme
Assistance to programmes of development of agricultural structure and rural areas
2. Period covered by the notification
1999G/SCM/N/60/HUN
Page 99
3. Policy objective and/or purpose of the subsidy
Assistance to programmes of development of agricultural structure and rural areas.
To increase the efficiency of programmes of development of agricultural structure and to
prepare projects eligible for support from the EU’s Structural Funds.
4. Background and authority for the subsidy
Decree 8/1999 (I. 20.) FVM of the Minister of  Agriculture and Regional Development, 158.-
159. §
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Institutes, organisations, foundations
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 5 million during the period covered by the
notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.51. Assistance to technical development
1. Title of the subsidy programme
Assistance to technical development
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
Assistance to technical development
4. Background and authority for the subsidy
Decree 8/1999 (I. 20.) FVM of the Minister of  Agriculture and Regional Development, 269-
274. §G/SCM/N/60/HUN
Page 100
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers, institutes
7. Subsidy per unit or the total amount
50 per cent of the costs of the establishment of pilot projects, investments related to
renewable energy resources
80 per cent of the costs of other investments related to the technical development
requirements arising from the EU accession
Payments under this programme amounted to HUF 340 million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.52. Assistance to genetic and technological development and to the utilisation of innovations  
1. Title of the subsidy programme
Assistance to genetic and technological devel opment and to the utilisation of innovations
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
Assistance to genetic and technological development
4. Background and authority for the subsidy
Decree 8/1999 (I. 20.) FVM of the Minister of  Agriculture and Regional Development, 275-
279. §
5. Form of the subsidy
Grant
6. To whom and how the subsidy is providedG/SCM/N/60/HUN
Page 101
Agricultural research institutes, universities
7. Subsidy per unit or the total amount
70 per cent of the costsNo payments under this programme during the period covered by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.53. Assistance to plant protection against th e damage caused by non-indigenous disease
1. Title of the subsidy programme
Assistance to plant protection against non-indigenous disease
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
Assistance to the additional plant protection costs caused by non-indigenous disease
4. Background and authority for the subsidy
Decree 8/1999 (I. 20.) FVM of the Minister of  Agriculture and Regional Development, 453.-
456. §
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
75 per cent of the costs of chemicals used for plant protection against non-indigenous disease
Payments under this programme amounted to HUF 6 million during the period covered by the
notification.
8. Duration of the subsidyG/SCM/N/60/HUN
Page 102
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.54. Assistance to regional (territorial) development
1. Title of the subsidy programme
Assistance to regional (territorial)development
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
Assistance to regional development, especially:
Investments creating new employment opportunities
Development of infrastructure
Innovation and logistic centres, industrial parks
Co-operation, integration programmes
Development of human resources
Development of regional specialities and organic productsDevelopment of tourism in villages and recreation areas
4. Background and authority for the subsidy
Decree 40/1999 (III.  3.) Korm. of the Government
5. Form of the subsidy
Grant
Interest subsidy
6. To whom and how the subsidy is provided
Legal and natural persons, organisations
7. Subsidy per unit or the total amount
Rate of subsidy depends on the applicant of the investment (non-profit organisations enjoy
preferential treatment) and on the GDP of the county.
Grant is 50 to 100 per cent of the cost of investment.
Payments under this programme amounted to HUF 18,601 million during the period covered
by the notification.G/SCM/N/60/HUN
Page 103
8. Duration of the subsidy
From 3 March to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.55 Payments for relief from damage caused by wild animals
1. Title of the subsidy programme
Payments for relief from damage caused by wild animals
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
Assistance to reduce the damage caused by wild animals
4. Background and authority for the subsidy
Decree 30/1997 (IV. 30.) FM of the Minister of Agriculture
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Payments under this programme amounted to HUF 2,816 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/60/HUN
Page 104
4.56. Assistance to the market of pig for slaughter
1. Title of the subsidy programme
Assistance to the market of pig for slaughter
2. Period covered by the notification
1999
3. Policy objective and /or purpose of the subsidy
To stabilise domestic prices
4. Background and authority for the subsidy
Decree 60/1999. (VII. 13.) FVM of the Minister for Agriculture   and Regional Development
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
The amount of subsidy is HUF 30 per kg
Payments under this programme amounted to HUF 300 million during the period covered by
the notification.
8. Duration of the subsidy
From 13 June 1999Duration has not been specified.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.57 Assistance to the storage in public warehouse of barley, rye and triticale harvested in 1998
1. Title of the subsidy programme
Assistance to the storage in public warehouse of barely, rye and triticale harvested in 1998.
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To ensure an adequate level of supply.G/SCM/N/60/HUN
Page 105
4. Background and authority for the subsidy
Decree 4/1998.(VII. 23.) FVM  of the Minister  of Agriculture and Regional Development
5. Form of the subsidy
Grant
Interest subsidy
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
Interest subsidy of 100 per cent of the basic interest rate of the National Bank of Hungary.Storage support: HUF 15 per ton per weekPayments under this programme amounted to HUF 100.2 million during the period covered
by the notification.
8. Duration of the subsidy
From 23 July  1998 to 18 January 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.58. Area-based payment for crop production
1. Title of the subsidy programme
Area based payment for crop production
2. Period covered by the notification
1999
3. Policy objective and/or purpose of the subsidy
To assist the crop production of small farms (1 to 300 hectares), to increase the income
potential of small farms, to moderate the disadvantages of small-scale farming.
4. Background and authority for the subsidy
Decree 8/1999 (I.20.) FVM of the Minister of Agriculture and Regional Development, 3-9. §G/SCM/N/60/HUN
Page 106
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers.Payments per hectare to all farms from 1 to 300 hectares engaged in the production of the
following crops:
− wheat, durum wheat, barley, rye, oat, triticale, rice, maize,
− (dry) pea, soy bean, bean, lent il, chick-pea, (white) lupine,
− rape, tobacco, potato,
− grass-seed, oil-pumpkin, hemp, oil-flax, boom-corn, sunflower-seed,
− vegetables on arable lands
7. Subsidy per unit or the total amount
1.00 to 20.00 hectares HUF 12,000 per hectare
20.01 to 50.00 hectares HUF 8,000 per hectare50.01 to 300.00 hectares HUF 4,000 per hectare
Producers in less favoured regions where the average golden crown value of the land does not
exceed 17 golden crown per hectare are authorised to get extra subsidy:
1.00 to 20.00 hectares HUF 3,000 per hectare
20.01 to 50.00 hectares HUF 2,000 per hectare
Payments under this programme amounted to HUF 11,149 million during the period covered
by the notification.
8. Duration of the subsidy
From 1 January to 31 December 1999
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
4.59.  Assistance to the quality control of certain foods
1. Title of the subsidy programme
Assistance to quality control of certain foods
2. Period covered by the notification
1999G/SCM/N/60/HUN
Page 107
3. Policy objective and/or purpose of the subsidy
To provide assistance to the quality control of certain foods
4. Background and authority for the subsidy
Decree 8/1999 (I.20.) §196-§199 FVM Minister of Agriculture and Regional Development
5. Form of the subsidy
Grant
6. To whom and how the subsidy is provided
Producers
7. Subsidy per unit or the total amount
50 per cent of the costs of the quality controlPayments under this programme amounted to HUF 44.4  million during the period covered by
the notification.
8. Duration of the subsidy
From 1 January 1997 to 25 February 2000
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5. Corporate tax concessions to assist struct ural adjustment and economic development
5.1. Corporate tax concession for companies with foreign participation
1. Title of the subsidy programme
Corporate tax concession for companies with foreign participation
2. Period covered by the notification
1999
7. Subsidy per unit or the total amount
The tax reduction is 60 per cent in the first five years and 40 per cent for an additional five
years period in the case of “manufacturing of goods”. In the case of “activities of particular
importance” the reduction rates are 100 per cent  and 60 per cent, respectively.
On the basis of tax declaration, the tax concession amounted to 39 800 million HUF.G/SCM/N/60/HUN
Page 108
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.2. Tax concession for dividend invested in Hungary by foreign shareholders
1. Title of the subsidy programme
Tax concession for dividend invested in Hungary by foreign shareholders
2. Period covered by the notification
1999
7. Subsidy per unit or the total amount
The amount of tax relief was negligible.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.3. Tax concession in entrepreneurial zone
1. Title of the subsidy programme
Tax concession in entrepreneurial zone
2. Period covered by the notification
1999
7. Subsidy per unit or the total amount
The subsidy including the aid under scheme 5.12 amounted to 800 million HUF.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.4. Tax concession related to regional investments
1. Title of the subsidy programme
Tax concession related to regional investments
2. Period covered by the notification
1999G/SCM/N/60/HUN
Page 109
7. Subsidy per unit or the total amount
The tax benefit amounted to 3 400 million HUF.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.5 Tax concession for investments exceeding 1 billion HUF
1. Title of the subsidy programme
Tax concession for investments exceeding 1 billion HUF
2. Period covered by the notification
1999
7. Subsidy per unit or the total amount
The total amount of tax benefit was 15 600 million HUF.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.6. Tax concession for investments exceeding 3 billion HUF
1. Title of the subsidy programme
Tax concession for investments exceeding 3 billion HUF
2. Period covered by the notification
1999
7. Subsidy per unit or the total amount
The tax benefit accounted for 2 300 million HUF.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.7. Tax concession for investments exceeding 10 billion HUF
1. Title of the subsidy programme
Tax concession for investments exceeding 10 billion HUFG/SCM/N/60/HUN
Page 110
2. Period covered by the notification
1999
7. Subsidy per unit or the total amount
The tax benefit accounted for 3 200 million HUF
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.8. Tax concession to promote structural adjustment
1. Title of the subsidy programme
Tax concession to promote structural adjustment
2. Period covered by the notification
1999
7. Subsidy per unit or the total amount
The tax concession can be made use of in the form of withholding the tax out of the tax
calculated, according to the following ratio of the interests on the loans and credits linked to the
approved project: 30 per cent of the capitalised interest or 18 per cent of the interest accounted as
costs.
The support, including the aid granted under schemes 5.9 and 5.13, amounted to 200 million
HUF.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.9. Tax concession for bank credits financing other investments
1. Title of the subsidy programme
Tax concession for bank credits financing other investments
2. Period covered by the notification
1999
7. Subsidy per unit or the total amount
The tax concession can be made use of in the form of withholding the tax out of the tax
calculated, according to the following ratio of the interests on bank and credits: 19 per cent of the
capitalised interest or 12 per cent of the interest accounted as costs.G/SCM/N/60/HUN
Page 111
Concerning  the amount of support see the answer under programme 5.8.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.10. Tax rate relief for foreign investors
1. Title of the subsidy programme
Tax rate relief for foreign investors
2. Period covered by the notification
1999
7. Subsidy per unit or the total amount
The foreign investor may take advantage of a preferential 3 per cent tax rate instead of the
normal 18 per cent rate.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.11. Investment-related tax concessions
1. Title of the subsidy programme
Investment-related tax concessions
2. Period covered by the notification
1999
7. Subsidy per unit or the total amount
The maximum extent of the subsidy is 100 per cent of the corporate tax due for the first 5
years and 60 per cent for the second period of 5 years.
The tax concession can be made use of in the form of withholding the tax out of the tax
calculated. Its amount accounted for 8 200 million HUF.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/60/HUN
Page 112
5.12 Tax concession  in regions of high priority
1. Title of the subsidy programme
Tax concession in regions of high priority
2. Period covered by the notification
1999
7. Subsidy per unit or the total amount
The aid including the support granted under programme 5.3 amounted to 800 million HUF.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.13. Tax concession to promote investments in production of exportable goods
1. Title of the subsidy programme
Tax concession to promote investments in production of exportable goods
2. Period covered by the notification
1999
7. Subsidy per unit or the total amount
The tax benefit can be made use of in the form of withholding the tax out of the tax
calculated, according to the following ratio of the interests on mid-term loans and credits: 19 per cent
of the capitalised interest or 6 per cent of the interest accounted as costs.
As to the amount of support please see programme 5.8.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
5.14. Tax relief related to R&D activities
1. Title of the subsidy programme
Tax relief related to R&D activities
2. Period covered by the notification
1999G/SCM/N/60/HUN
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7. Subsidy per unit or the total amount
20 per cent of the amount incurred as direct costs of research and development is deductible
from the tax base.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
6. Basic central technical development programme
1. Title of the subsidy programme
Basic central technical development programme
2. Period covered by the notification
1999
7. Subsidy per unit or the total amount
The total amount was: 5 163 million HUF (GGBE). The total number of subsidised projects:
7 314.
The maximum net amount per unit was 50 million HUF.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
7. Territorial development fund
1. Title of the subsidy programme
Territorial development fund
2. Period covered by the notification
1999
7. Subsidy per unit or the total amount
The total amount accounted for 4 480 million HUF.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.G/SCM/N/60/HUN
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8. Budgetary scheme earmarked for economic development
1. Title of the subsidy programme
Budgetary scheme earmarked for economic development
2. Period covered by the notification
1999
7. Subsidy per unit or the total amount
Net costs to government: HUF  11 600 million.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
9. Mining conversion programme
1. Title of the subsidy programme
Mining conversion programme
2. Period covered by the notification
1999
7. Subsidy per unit or the total amount
The subsidy amounted to 4 001 million HUF.
9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
10.  Central Environment Protection Fund
1. Title of the subsidy programme
Central Environment Protection Fund
2. Period covered by the notification
1999
7. Subsidy per unit or the total amount
The total amount accounted for 22 000 million HUF.G/SCM/N/60/HUN
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9. Statistical data permitting an assessment of the trade effects of the subsidy
N.A.
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