Press Release: Commission proposes more competitive rice market

On 7.6.00, the European Commission adopted a proposal to reform the Common Market Organisation for rice. Aimed at restoring balance in the European rice market, the reform strives to increase the competitiveness of European rice. The reform is based on two components. An increase of the direct aid for the rice producers and the abolition of the intervention mechanism. Private storage is foreseen to protect farmers from market disturbances. The proposal further helps to ensure the continuation of rice growing in areas where it is beneficial for the environment and foresees a report from Member States by the end of 2003 on the environmental situation of rice production with special reference to the development in traditional zones.