WRITTEN QUESTION E-0342/98 by Cristiana Muscardini (NI) to the Commission (17 February 1998)

Subject: Crisis on the rice market

As, sadly, was to be predicted, Community producers, especially in northern Italy, are suffering severely as a result of the crisis on the rice market. The Italian Government is imposing austerity measures and increasing tax burdens in order to meet the Maastricht criteria. Milk producers' trade union committees have been fomenting unrest and protesting for some months about the unresolved matter of fines and reform of the quota system. Among broad sections of the farming world there are widespread fears about the prospective enlargement of the Union and the adverse consequences that will ensure in regions affected by economic stagnation and high unemployment rates. In addition to all of the above, rice growers are now staging demonstrations involving over six thousand families and enterprises in Vercelli province alone.

Public opinion is blaming the Union for these hardships. The crisis has structural roots and has no doubt been aggravated by the introduction of the cumulative levy system for husked rice imports. Agricultural holdings cannot be radically restructured in the short term in an attempt to bring prices into line with the world market.

1. Given the continuing serious disruption on the Community rice market, does the Commission not think it advisable to extend the term of validity of the safeguard clause laid down in Regulation (EC) No 764/97, which is shortly due to expire?

2. Does it not consider that the common market organization should undergo further reform in order to make for smooth development of the rice market, thus meeting the essential need?

3. Is it not worried by a situation in which one large group of citizens after another is turning against Community policy?

Answer given by Mr Fischler on behalf of the Commission (13 March 1998)

1. Subsequent to its Decision 97/803/EC of 24 November 1997 amending at mid-term, Decision 91/482/EEC on the association of the overseas countries and territories with the European Economic Community ((OJ L 329, 29.11.1997. )), the Council has adapted the import arrangements for rice originating in the overseas countries and territories (OCTs). Commission Regulation (EC) No 2603/97 lays down the detailed implementing rules for such imports and for imports of rice originating in the ACP countries ((OJ L 351, 23.12.1997. )).

The cumulation of ACP / OCT origin was permitted up to an overall annual limit of 160 000 tonnes of husked rice equivalent, including the tariff quota of 125 000 tonnes for rice originating in the ACP countries laid down in the Fourth Lomé Convention.

Since this Regulation entered into force on 1 January 1998, it was not necessary to extend the safeguard clause for rice originating in the OCTs.

2. The Commission is currently studying certain changes in the common market organisation for rice which might prove necessary due to the declining competitiveness of European rice compared with rice originating in third countries.

3. The Commission understands the concerns of certain professional groups with respect to the future of the European rice sector. It would like to assure the Honourable Member that it is paying particular attention to these concerns with a view to finding solutions that are satisfactory for all concerned.