COMMENTS

on Resolution of the Council of Ministers of the Republic of Belarus No. 1653 On Additional Measures on Implementation of the Program for Agroindustrial Complex Improvement of the Republic of Belarus dated 13 November 2001 approved by Decree of the President of the Republic of Belarus No. 256 dated 14 May 2001

Agriculture is one of the most vital branches of the republic' national economy. Despite measures being assumed at the republican and regional levels, the situation in the agroindustrial complex remains complicated. Further development of the branch will be carried out in accordance with the Program for Agroindustrial Complex Improvement of the Republic of Belarus for 2001-2005 approved by Decree of the President of the Republic of Belarus No. 256 dated 14 May 2001. Its provisions envisage a new approach to the whole spectrum of social, economic, technological and managerial problems, including further intensification of regional and economic specialization in agricultural production.

To accelerate the fulfillment of the Program for Agroindustrial Complex Improvement of the Republic of Belarus for 2001-2005 as well as the implementation by the agroindustrial complex of the prediction parameters fixed by the Program for Social and Economic Development of the Republic of Belarus for 2001-2005, on 13 November 2001, the Council of Ministers of the Republic of Belarus approved Resolution No.1653 On Additional Measures on Implementation of the Program for Agroindustrial Complex Improvement in the Republic of Belarus approved by Decree of the President of the Republic of Belarus No. 256 dated 14 May 2001.

In accordance with this Resolution, regional executive committees are assigned the following tasks for the near future:

- to ensure an updating of district and regional programs in compliance with the recommendations received;

- to determine and approve a list of agricultural enterprises to be reformed by 1 March 2002, based on industrial and economic activity analysis of agricultural enterprises.

To assume measures on reforming agricultural enterprises, the Ministry of Agriculture and Food, Ministry of Economy of the Republic of Belarus in association with others concerned, are entrusted to elaborate a provision on restructuring, reorganisation and liquidation of agroindustrial enterprises to be implemented under the current legislation.

To grant certifications to legal and physical persons desiring to take possession or lease of property of reformed agricultural enterprises and enterprises processing agricultural production, the Resolution envisages creation of republican and regional commissions which are to carry out their activities according to the regulations approved.

The Ministry of Agriculture and Food of the Republic of Belarus, regional executive committees, Belarusian State Food Industry Concern Belgospishcheprom together with other interested parties are appointed to develop new production and management organisational schemes providing for creation of such a structure which is to include agricultural processing and trading enterprises, banks and nonbank financial institutions.

The Government of the Republic of Belarus attaches paramount importance to integrated measures to be taken for restructuring of processing enterprises, determination of their status in the republican system of public management, concentration of raw material resources in those enterprises where processing of such resources will be with the greatest economic benefits, as well as formation of a mechanism of economic interaction among partners under an integration agreement.

Special instructions are given to develop a Concept for Structural Optimisation of Agricultural Service Providers as well as to put forward proposals regarding advantages of creating an integrated structure for production and realisation of mineral fertilizers and soil enriching.

The Resolution in question provides for transference of social assets possessed by agricultural enterprises to local executive and administrative bodies.

The Council of Ministers of the Republic of Belarus has set a task to streamline a system of agricultural procurements for the republican state needs, providing for reduction of their range and supply down to satisfaction of the state priority needs. At that, the state order should solely be placed by tender, and prices on procurements for the republican state needs will be fixed at the level ensuring profitable manufacture by effective agricultural enterprises. Such procurements are to be financed at the budget expense. Agricultural enterprises will be given a free hand to set prices on products to be sold through other marketing channels.

Resolution No.1653 defines a procedure for allocating funds from the Republican Support Fund for Agricultural Producers and Agronomy.

To help assure practical implementation of the Program the following significant decisions regarding agricultural enterprises are to be made:

- on restructuring debts for energy consumption;

- on repayment of short-term credits granted under Government guarantees;

- on restructuring debts for commodity credits;

- on decrease of flat-rate agricultural tax;

- on property insurance; etc.

The Ministry of Agriculture and Food in association with Ministry of Economy, Ministry of Finance of the Republic of Belarus, regional executive committees and others concerned are to introduce proposals on solutions of these questions to the Council of Ministers of the Republic of Belarus.

In addition, the above-mentioned bodies are assigned to work out and submit to the Council of Ministers of the Republic of Belarus a Concept for Attracting Foreign Investments to the Agroindustrial Sector, to elaborate a Plan for Agricultural Machinery and Equipment Procurements with the Participation of the Open Joint-Stock Company BelAgroPromBank Using Budgetary Funds, and to introduce motions on further development and stimulation of export of agricultural products, promotion of foreign investments to the agroindustrial sector.

In the sphere of improving economic activity mechanism, the optimization of land use is considered to be one of the major directions. It includes gradual removal of the least productive lands from active crop rotation, lay-out of farm production in the country's areas and regions with the highest recoupment of capital investment. In this regard, in accordance with the Resolution all interested parties are assigned to submit more specific information about their specialization.

It is also planned to apply more effective methods of work with personal subsidiary plots and farms, to define their place and role in a general structure of factory-farm integration.

To approve Recommendations to Increase Incentives for Labour in Rural Zones and to bring them to the notice of the interested parties are among primary tasks set by the Resolution as well.

To implement the main provisions of the Program for Agroindustrial Complex Improvement of the Republic of Belarus for the period 2001-2005, it is planned to work out and submit regulatory acts in accordance with established procedure.

The implementation of Resolution of the Council of Ministers of the Republic of Belarus No.1653 dated 13 November 2001 On Additional Measures on Implementation of the Program on Agroindustrial Complex Improvement of the Republic of Belarus approved by Decree of the President of the Republic of Belarus No. 256 dated 14 May 2001 will allow to increase output of agricultural production and sales, to raise the efficiency of the republic's agroindustrial complex.

PUBLICATIONS OF THE COUNCIL OF MINISTERS

INTERNET RESOURCES