Proposal for a COUNCIL REGULATION (EEC) amending Regulation (EEC) No 2076/92 fixing the premiums for leaf tobacco by group of tobacco varieties and the processing quotas allocated by group of varieties and by Member State
Date: 1993-10-21
Institutions: European Commission
Subjects: guarantee threshold, tobacco

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1 

' 

COMVIISSION  OF  THE  EUROPEAN  COMMUNITIES 

C0M(93) 507 final 

Brussels, 21 October  1993 

f&. 

Proposal  for a 

COUNCIL REGULATION  (EEC) 

amending Regulation.(EEC) No 2076/92 fixing the premiums for 
leaf tobacco by group of tobacco varieties and the processing  quotas 
allocated by group of varieties and by Member  State 

(presented by  the Commission) 

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l;fr=S-:4?fpg 

EXPLANATORY  MEMORANDUM 

For the  1994 tobacco harvest, the guarantee  thresholds  (quotas) were  allocated by 
variety  group and by Member State  in accordance with Council Regulation  (EEC) 
No 2076/92 of  30 June  1992.  Subsequently, the  situation  on the Community  and 
international markets  for tobacco has changed.  The allocation of the  guarantee 
thresholds  has therefore  to be adjusted to the current market conditions, whilst 
the total quantities  allocated to the various Member states are maintained 
unchanged. 

This measure must be taken at Community  level, since this  is an area  in which 
only the Community  has power  to act. Its  intensity  and proportionality  are 
described  in detail below. 

The current world market  situation  shows a surplus  supply  of  flue-cured  tobacco 
and an  increase  in stocks of this type of tobacco.  Over  the past year, prices 
for this tobacco  have  fallen  substantially.  In spite of  a reduced  level of 
production  planned  by certain  producer  countries, the  supply  of  tobacco  to the 
world market  in  1994 will exceed demand.  As  far as Community  production  is 
concerned,  the guarantee threshold  for flue-cured  tobacco  should therefore be 
maintained  at its current  level or provision made, at the very most, for very 
moderate  increases. 

As  far as light  air-cured  tobacco  is concerned, the world market  is also in 
surplus, but to a lesser extent than  in the case of  flue-cured  tobacco.  Modest 
increases may  therefore be envisaged  for this type of tobacco  if a demand to this 
effect  is made. 

As  far as dark  air-cured  tobacco  is concerned,  some demand  is noted  for tobaccos 
of a suitable quality  for  industrial purposes.  Production  of  high-quality 
tobacco of this  type may  therefore be maintained  at its current  level or even 
increased  at the expense of  other types of varieties  in certain  community 
countries. 

Production  of  fire-cured  tobacco  is limited.  These  special tobaccos  are produced 
by few countries  in the world  and demand  for them  is stable.  It  is therefore 
desirable  that, the threshold  quantity  be maintained  at around  its current  level 
in order to permit conversion  to this type of tobacco. 

As  far as sun-cured  is tobacco  is concerned, the market  is stable  for the 
aromatic  varieties  in demand  (Basmas, Katerini).  In the case of  lesser-quality 
sun-cured  tobacco, the world market  is relatively  firm as a result of a dramatic 
decline  in production  in the East European countries.  A certain demand  is 
anticipated  for  such tobacco.  Production  should therefore  be maintained more or 
less at its current  level, with  a tendency  towards conversion  to the Basmas and 
Katerini varieties  for which there will continue to be world demand, even if 
producers prefer tobaccos requiring  less  labour-intensive  production. 

Proposal  for a 
Council Regulation  (EEC) No 
of 
amending Regulation  (EEC) No 2076/92  fixing  the premiums  for 
leaf tobacco by group of tobacco varieties  and the processing  quotas 
allocated  by group of varieties  and by Member state 

THE COUNCIL OF THE EUROPEAN COMMUNITIES, 

Having regard to the Treaty  establishing  the European  Economic  Community, 

Having regard to council Regulation  (EEC) No 2075/92  of  30 June  1992 on the 

common organization  of the market  in raw tobacco*, and  in particular 

Article  9(2) thereof, 

Having  regard to the proposal  from the Commission^, 

Having regard  to the opinion of the European  Parliament^, 

Whereas Council Regulation  (EEC) No 2076/92 of  30 June  19924  fixes the 

guarantee  thresholds  by group of varieties  and by Member  State  for the  1994 

harvest; whereas market conditions  have changed  since then; whereas  this 

should be taken  into account by adjusting  the various  guarantee  thresholds 

to the  foreseeable  possibilities  of disposal while maintaining  unchanged  the 

total quantities  allocated  to the Member States, 

1  OJ No L 215, 30.7.1992, p. 70. 
2 
3 
4  OJ No L 215, 30.7.1992, p. 77. 

HAS ADOPTED THIS REGULATION: 

- 3-

Article 1 

In Annex II to Regulation  (EEC) No 2076/92, the table  "GUARANTEE THRESHOLDS 

1994" is hereby replaced by the table in the Annex hereto. 

Article 2 

This Regulation  shall enter into force on the day following  its publication 

in the Official Journal of the European Communities. 

This Regulation  shall be binding in its entirety  and directly  applicable in 

all Member states. 

Done at 

For the Council 

A M N E X 

GUARANTEE  THRESHOLDS  1994 

| 
I 
| 
| 

I 

I 
I 

I 
I 
| Flue cured  |  Light 
| 

I 
I 
| 
| air cured  | air cured  | 

J 
I 
I 
I 
| 
j 
| Fire cured  | Sun cured  | 
| 

"I 
Dark 

IV 

" 

V 

VI 

|  Basmas 

Other 

| 
| 
| 
| 
|  Katerini  | K. Koulak  | 

VIII 

VII 

| 

TOTAL 

|_ 
| 
j 
|  (tonnes)  | 
| 

|  Italy 

|  48.000 

j  45.500 

|  17.200 

j  8.100 

j  14.000 

j 

j 

j 

j  132.800 

j 

| Greece 

j  30.000 

j  12.400 

j 

j 

j  16.000 

j  26.300 

j  22.000 

j  20.000 

j  126.700 

j 

j Spain 

j  28.300 

j 

2.470 

j 

11.500 

j 

30 

j 

| Portugal 

j 

5.500 

j 

1.200 

j 

j 

j France 

j 

8.300 

| 

7.300 

j  12.000 

j 

j Germany 

j 

3.000 

j 

4.500 

j 

4.500 

j 

j Belgium 

j 

j 

200 

j 

1.700 

j 

j 

j 

j 

j 

j 

j 

j 

j 

j 

j 

j 

j 

j 

j 

j 

j 

j 

j 

j 

j  42.300 

j 

j 

6.700  j 

j  27.600 

j 

j  12-000  j 

j 

1.900 

j 

j 
J 

j  123.100 
I 

|  73.570 
I 

j  46.900 
I 

j  8.130 
I 

j  30.000 
I 

j  26.300 
I 

j  22.000 
I 

j  20.000 
I 

j  350.000 
I 

j 
L 

t> 

F I N A N C I AL  STATEMENT 

DATE: 

1. BUDGET  HEADING: 171 

APPROPRIATIONS: ECU  1 268 million 

2. TITLE: Proposal  for  a Council  ReguUition amending  Regulation  (EEC) No 2076/92 fixing  the premiums for  leaf 
tobacco by group of tobacco varieties  and  the processing  quotas allocated by group of varieties and 
by Member State. 

3. LEGAL BASIS: Council  Regulation  (EEC) No 2075/92 

4. AIMS OF PROJECT: New allocation  of quotas  for  1994 

5.  FINANCIAL  IMPLICATIONS 

1993 

Period  of  12 months 

Current  Financial  Year 

Following  Financial  Year 
1994 

ECU 0.7 million 

5.0  EXPENDITURE 

- CHARGED  TO THE EC BUDGET 
-  (REFUNDS/INTERVENTION) 
- NATIONAL  ADMINISTRATION 
- OTHER 

5.1  REVENUE 

- OWN RESOURCES OF  THE EC 
(LEVIES/CUSTOMS  DUTIES) 

- NATIONAL 

1995 

1996 

1997 

1998 

5.0.1  ESTIMATED  EXPENDITURE 

ECU 0.7 million 

5.1.1  ESTIMATED  REVENUE 

5.2 METHOD OF  CALCULATION: 

See attached calculations. 

6.0  CAN  THE PROJECT  BE  FINANCED  FROM APPROPRIAT IONS ENTERED  IN THE RELEVANT  CHAPTER  OF  THE CURRENT  BUDGET? 

6.1  CAN  THE PROJECT  BE  FINANCED  BY TRANSFER  BETWEEN  CHAPTERS OF THE CURRENT  BUDGET? 

6.2  IS A SUPPLEMENTARY  BUDGET  NECESSARY? 

6.3  WILL  FUTURE BUDGET APPROPRIATIONS BE NECESSARY? 

OBSERVATIONS: 

YES 

YES 

NO 

YES 

CAXCOLATIOH  OF  TBB  COST  OF  TBB  PROPOSES  AMEMDMBBT  TO  1994  QUOTAS 

QUOTA 
94  Reform 
T 

| 
| 

QUOTA 
94 

I  New  proposal 
I 

VARIETIES 

I 

FLUE CURED 

Virginia 

II 

LIGHT  AIR  CURED 

III 

DARK  AIR  CURED 

IV 

FIRE  CURED 

V 

SUN  CURED 

Basmas 
Katerini  and  similar  varieties 

VI 
VII 
VIII  Kaba  Koulak  (classicl 

| 
| 

I 
i 

! 

I 
I 
I 
I 
I 
I 

J 
I 
I 
I 
I 
i 

I 

| 

! 
I 
I 
I 
I 

| 
I 
I 

| 

I 
I 
| 
| 
| 

I 

Production 
area 

GR 
E 
F 
t 
r 
' 

p 
E 
- 
GR 
: 

B 

D 
r 
B 
: 
E 

: 
E 

I 
G£ 
GR 
GR 
3R 

| 
| 
I 
I 

| 

| 

I 
I 
I 
I 
I 

j 

I 
I 
I 
I 
j 

I 

| 

| 

I 
I 
I 
| 

| 

I 

I 

| 

I 
I 
| 
| 
| 

| 

121.600 

29.000 

28.300 
5.500 
2.500 
8.700 
47.600 

77 .370 

1.200 
4.970 
45.000 
12.300 
6.000 

42.600 

3.500 

11.000 
1.900 
17.200 
9.000 

9.030 

9.000 

30 

30.400 

14.000 
16.400 
26.500 
22.500 
20.000 

350.000 

j 

I 

| 
| 
| 
| 
| 

j 

| 
| 
| 
| 
| 

I 

j 

| 

| 
| 
| 
| 

| 

| 

I 

| 

| 
| 
| 
| 
| 

| 

| 
| 

| 
I 

j 

I 

| 
| 
! 
| 
| 

\ 

| 
| 
| 
| 
j 

| 

| 

j 

| 
| 
| 
| 

| 

| 

| 

| 

| 
| 
| 
| 
| 

Difference 

T 

1.000 

0 
0 
500 
-400 
400 

0 
-2.500 
500 
100 
-1.500 

200 

1.000 

1.000 
-200 
0 
2.500 

-900 

0 

0 
-400 
-200 
-500 
0 

123 .100 

30.000 

28.300 
5.500 
3.000 
8.300 
48.000 

73.570 

1.200 
2.470 
45.500 
12.400 
4.500 

200 

46.900 

4.500 

12.000 
1.700 
17.200 
11.500 

8.130 

8.100 

30 

30.000 

14.000 
16.000 
26.300 
22 . 000 
20.000 

350.000 

I 

|  Reform  premiums  | 
| 
0.966912 
| 

Cost 

| with  realignment  |  A  ECU  million 
I 

E C U /t 

| 

| 
| 

Cost 
by  group 

|  A  ECU  million 
| 

| 

I 

| 
| 
| 
| 
| 

j 

| 
| 
| 
| 
j 

| 

! 

j 

| 
| 
| 
| 

| 

| 

| 

| 

| 
| 
| 
| 
| 

I 

2.468 

2.468 
2.468 
2.820 
2.820 
2.468 

1.974 
1.974 
1.974 
1.974 
2.591 

2.591 

2.360 

2.261 
2.261 
1.974 
1.974 

2.171 

2.171 

1.974 
1.974 
3.257 
2.763 
1.974 

j 

I 

| 
| 
| 
| 
| 

I 

| 
| 
| 
| 
j 

| 

j 

j 

| 
| 
| 
| 

| 

| 

| 

| 

| 
| 
| 
I 
| 

I 

2,5 

0,0 
0,0 
1,4 
-1,1 
1,0 

0,0 
-4,9 
1,0 
0,2 
-3,9 

0,5 

2,4 

2,3 
-0,5 
0,0 
4,9 

3,7  | 

3,74 

I 

| 
| 
| 
| 
| 

-8,7  ! 

-8  57 

| 
| 
| 
| 
] 

| 

9,1  j 

9,10 

j 

| 
| 
| 
| 

-2,0  | 

-1,95 

-2,0 

0,0 

| 

| 

0,0 
-0,8 

-0,8  | 

| 
| 
-0,7  | 
-1,4  I 
0,0  | 

-0,79 

-0,65 
-1  38 
0  00 

°\ 

I 

-0,61 

1.2 07 
-0,74 

A ECU  million 
D.R. 
B ECU  million 

? * 

ISSN 0254-1475 

COM (93) 507 final 

DOCUMENTS 

EN 

03 

Catalogue number : CB-CO-93-543-EN-C 

ISBN 92-77-59908-1 

Office for Official Publications of the European Communities 
L-2985 Luxembourg