Cotton: production aid

PURPOSE : Commission proposal for a Council Regulation on production aid for cotton. CONTENT : This measure amends the common organisation of the market in cotton : - The amount of production aid for unginned cotton is fixed on the basis of the difference between the guide price and the world market price. The guide price is set at EUR106.30. This proposal does make provision for the guide price to be reduced under certain circumstances. Provision is also made for determining the world market price. - A guaranteed national quantity for unginned cotton for each Member State is laid down, and provisions are made for a stabiliser mechanism. - Provisions are made for the payment of aid in full to beneficiaries, and the period during which aid applications may be submitted is extended. Methods for determining the amount of aid are laid down. - The proposal deals with the environmental impact of cotton production. Member States are required to take measures to protect the environment and to send the Commission a report on national measures adopted before 31 December 2003. - This proposal is also a simplifying measure and certain other regulations affecting the sector are repealed.�