ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(77)78
Vol.1977/0031

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(77)78final.
Brussels.10March1977
«
COMMISSION COMMUNICATION TOTHECOUNCIL
ONEMERGENCY FOODAIDINTHEFORMOP
BUTTEROIL FORINDIA
PROPOSALFORCOUNCILREGULATION (EEC)
layingdowngeneralrulesforthesupplyofmilkfatstoIndia
asfoodaid
(submittedtotheCouncil/§>"•A
CouncilbytheCommission}^Sih;d
au,C
General
COM(77)78final.

•MMA^W||–à
1.TheIndianGovernmentfsrequestandanalysisofrequirementa
TheIndianOorernmsnthasrecentlyappealedtotheCommunityfor
emergencyfoodaidintheformof10000tonnesofbutteroil,
Inviewoftheerraticmonsoonconditionsduringthe1976/77
agriculturalyearintheoilseedproductionareas,therewasaverymarkeddecreaseintheorop?oftheorderof20^toaccording
tothemostrecentestimatesleycomparisonwiththepreceding
agriculturalyear,infactamuchgreaterdecreasethanwasintially
forecast®
Thisdropintheharvestandtheresultinglossofoilproduction
havebroughtwiththemanunforeseeably dramaticrise,intheprice
ofvegetable2andanimaloils,whichisreaohingitspeakatthis
precisetimewhenstocksareusedtobridgethegapuntilthenext
harvestinMay®Unlikecereala?thepricesofoilsand.fatsare
notsubsidizedbytheGovernmentfortheneediestsectionsofthe
population,Forthisreasonthesepeopleareparticularlyaffected
tythepresentsituation*Moreoveritshouldbenotedthattherise
inthepriceofgheehasalsoresultedinadecreaseinthe
availabilityoffreshmilk,whichfindsamoreadvantageousoutlet
intheproductionofghee\andthereforedisturbsthenormalsupplies
ofthisproduct}whichisequallyimportantfortheneedysections
ofthepopulation *
Becauseofthedeficitinproductionmentionedabove,thecountry's
needsinimportsofanimalandvegetableoilsandfatshasincreased
considerably and,facedwiththisserioussituationtheGovernment
has;justtakenstepstoabolishtherestrictions onimportswhichit
hadsetupsincetheoilorisis(importshavebeenoftheox'derof
250000tonnesperazmtoainrecentyears),Asregardsfoodaid?the
UnitedStateshavereoantlydecidedtosendaidintheformof
50000tomesofaoyaoiland*cottonseed®
In1975/76tthetotalproductionofoilseedswas9*96milliontonnes
ofwhich6*9.milliontonnesofgroundnuts *Thelatterfellto6million
tonnesin1976/77*
2BetweenJuneandDecember1976,accordingtothekindofoil,therise
inpriceswasbetween60$and87%*

VIII/190/77-E
Community aidwould therefore help toremedy thepresent general
scaroity .Itwould besold onthelocal market andthecounterpart
funds would beused tofinanoe adevelopment project inthedairy
industry .
2.Commission proposals
Inview ofthepreceding considerations ,theCommission isofthe
opinion that theCommunity should reply favourably totherequest
from theIndian Government bygranting emergency food aidtoIndia .
However ,since thequantities available forthe1977 programme are
restricted to45000tonnes ^theCommission feels that therequest
cannot bemetinitsentirety .Ittherefore proposes delivering
3000tonnes ofbutteroil totheport ofshipment .This quantity
isgreater than thelast allocation ofbutteroil toIndia
(25°0tonnes in1974 )*
Thecost ofthis measure ,which will becharged against the1977
programme andisestaimted at2*70 million units ofaccount (at
world prices ),does notinvolve anyexpenditure fortheCommunity
inexcess ofthat -already provided forinthe1977 Budget2 .
Andthereserve for1976 isalmost entirely used up(239tonnes
still available ).
2Seefinancial armex .

3VIII/190/77-È
CONCLUSION
Inviewoftheforegoing,itisproposedthattheCouncil
–decidetograntemergencyfoodaidtoIndiaintheformof3000
tonnesofbutteroiltobedeliveredtotheportofshipment;
–adoptaccordinglytheregulationannexedhereto.
/

-4- VIII/190/77–E
AÎTFEXI
PROPOSALFORCOUNCILREGULATION (EEC)Bo11
of
layingdowngeneralrulesforthesupplyofmilkfatstoIndiaasfoodaid.
THECOUNCILOPTHEEUROPEANCOMMUNITIES,
HavingregardtotheTreatyestablishing theEuropeanEconomicCommunity,'
HavingregardtoCouncilRegulation(EEC)No804/68of27June1968on
thecommonorganizationofthemarketinmilkandmilkproducts^,aslast
amendedbyRegulation(EEC)No559/76^,andinp*»rticul*>rArtiole6(6)
thereof,
HavingregardtotheproposalfromtheCommission,
WhereasIndiah*sindicateditsrequirements inmilk,fats;whereas
thesefatsmaybesuppliedintheformofbutterorbutteroilproduced
withintheCommunityandmeetingoertainqualitystandards;
4
Whereastheamountsofbutterheldatpresentbytheintervention agencies
aresufficienttopermitaquantityofbutterorbutteroilcorresponding to
3000tonnesofbutteroiltobesuppliedasfoodaid;
whereasdeliverymustbemade ,atthecheapestpossibleprice;
whereas,inordertoachievethataim,provisionshouldbemodefor8.
tenderingprocedure;whereas,however,tosavetime,itmaybedesirableinexceptions!oasestonegotiateprivateoontracts;
OJNoL148,28.6.19-68,p.13.
20JNoL67,15.3.1976,p.9.

-5- VIII/19C/77-E:
HASADOPTEDTHISRMSULATlQITs
Article 1
Aquantityof3000tonnesofbutterailsh*>llbeandaavailabletoIndia
intheformoffoodaid.
Article2
ThebutteroilreferredtoinArticle1shallbeprocessedfrombutter
purchasedinaccordancewithArticle6(1)ofRegulation(EEC)Ho804/68.
Article3
ForthepurposesofArticle1,thecostofthebutteroildeliveredtotheport
ofshipmentortoacorresponding stage,shfllbefinancedbythe
Community.
Article4
Contractsfordeliveryofthaproduct,includingpacking,labellingand
forwardingtotheportofshipmentortoacorresponding stageshallbe
putouttotender,.save'wherethereareparticularreasonsjustifying .
thenegotiation ofprivatecontracts. '
Article5
Thesumstobepaidtotheundertakingselectedshallbedueonlyif:
(a)theundertakingsatisfiestheconditionslaiddowninthe
invitationtofenderortheprivatecontract:
and
(b)thequality«.ndpackingofthedeliveredproductarefoundon
inspectiontocomplywiththerelevantCommunityprovisions.
Provisionmaybenwdeforpartofsuohsumstobepaidin*>dv«»nce.

-6- VIII/190/77-E
Article 6
This Regulation sh»ll enter into force onthethird dayfollowing its
publication inthe Official Journal oftheEuropean Communities .
This Regulation shall bebinding initsentirety anddirectly applicable
inall Member States .
Done at
For the Council
The President

-7- VIII/190/77-E
AnnexII
Financial Annex
1.Relevantbudgetheadingcode
-Article921-item9212of1977budget(appropriation »47millionu.».)
2.Titleofbudgetheading
–Item9212–foodaidindairyproducts–1977butter/butteroilprogramme
3.Legalbasis
%
CouncilDecisionof23November1976(Budget).
4.Description ,objectiveand.justification oftheproject
*
–Allocationof3000tonnesofbutteroiltotheIndianGovernment.
5•Appropriat1ons
5.1Methodofcalculation
►»«
oRawmaterial
WIIUIWIMIIIHIIKWIWB »
Butteroil3000tonnesx901.58u.s./t»2.70millionu.*».
5.2Implications inrespectofexpenditure
Thismeasurewouldnotinvolve ,anyexpenditureinadditionto
thatforecastforthe1977programme.
6.Typeofcontroltobeapplied
FinancialRegulationof25April1973forthegeneralbudgetofthe
Communities .