Rice: reform of the common organisation of the market COM
1995/0203(CNS)
OBJECTIVE : reform of the common organization of the market in rice following the entry into
force, on 1 January 1995, of the agricultural provisions of the GATT, which amends the
international arrangements for trade in rice.
COMMUNITY MEASURE : Council Regulation (EC) No 3072/95 on the common organization
of the market in rice.
SUBSTANCE : reform in the rice sector will introduce a similar mechanism to that adopted in
1992 in the reform of the Community market in cereals. Its key elements are as follows:
* a 15% reduction in the producer price over three years from the 1997/98 marketing year;
* compensation to producers in the form of a payment per hectare whose amounts will be
calculated on the basis of average agronomic yield in the Member States;
* The establishment of a national base area for each producer Member State and a specific base
area for French Guyana. The base areas shall be as follows :
- Spain : 104 973 ha;
- France : Guyana 5 500 ha; metropolitan territory 24 500 ha;
- Greece : 24 891 ha;
- Italy : 239 259 ha;
- Portugal : 34 000 ha.
* The imposition of penalties, at national level, where the base area of a Member State has been
exceeded. The penalty will be progressive and will depend on the rate of overrun;
* The fixing of an intervention price for paddy rice at ECU 351/t for the 1996/7 marketing year,
followed by annual reductions to ECU 298,35/t for the 1999/2000 and subsequent marketing
years;
* Intervention in the rice sector will be open from 1 April to 31 July (four months, four monthly
increases);
* An enhancement of the quality policy: the parameters for defining the standard quality for
intervention are strengthened with a view to bringing them into line with the production
standards of third countries exporting to the Community market;
* In order to ensure continuity of supply to EC processing plants, the Commission will be
authorized to take all appropriate action to deal with exceptional circumstances.
ENTRY INTO FORCE : 30 December 1995. The regulation is applicable from the 1996/1997
marketing year.
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