92001E1389

WRITTEN QUESTION E-1389/01

by Adriana Poli Bortone (UEN) to the Commission

(7 May 2001)

Subject: Crisis in the oriental tobacco sector in Puglia, Italy

There is crisis in the oriental tobacco sector in Salento (Puglia) due to a reduction in production quotas, which places it at a disadvantage in relation to Greek oriental tobacco in view of the higher level of Community subsidies available for the latter. This being so, does the Commission intend to take action to provide a structural solution to the problems of the tobacco sector by introducing, if only as a temporary measure, Community aid for such products linked to their quality?

Answer given by Mr Fischler on behalf of the Commission

(4 July 2001)

The present crisis for Salentini tobaccos arises in essence from the difficulty of selling them despite the reduction in their production quotas.

Greek oriental tobacco, for which there is good demand, is unaffected. It can be sold at satisfactory prices.

A structural solution to the oriental tobacco problem in Apulia is provided by the production quota buy-back mechanism designed to facilitate voluntary abandonment of tobacco-growing, introduced when the common market organisation (CMO) for raw tobacco was overhauled in 1998.

Before the 1998 changes it was also possible under the tobacco CMO to launch rural development programmes to permit redeployment to other activities in tobacco-growing regions in difficulty.

The Commission has no plans for additional quality-linked measures given that the provisions now in force already include premium modulation according to quality. Under decisions already adopted by the Council these modulation provisions have been further strengthened this year.