Flax and hemp: common organisation of the markets CMO (amend. Regulation (EEC) No 1308/70)

The European Parliament adopted its report drafted by Agnes SCHIERHUBER (EPP/ED, Germany) amending the Commission proposal for a regulation on the common organisation of the market in flax and hemp grown for fibre. The main amendments are as follows: -the Commission's original proposal on the distinction between the market in long flax fibre and the market for short flax fibre and hemp fibre was amended to state that processing aid should be granted on the basis of the economic viability of the sector. -in order to prevent misuse of funds, processing aid should be granted only if the processor provides, within a period of 18 months, proof of processing. -processing aid will also be granted where the farmer and the primary processor are one and the same person and no purchase contract therefore exists. -the new arrangements will apply from 1 July 2001 rather than 1 July 2000.�