The Budget of the Cyprus Cereals Committee for the year 2021 was unanimously passed into law, which is in deficit by € 7,118,226, while the committee's cash reserve at 31 December 2020, which amounted to € 6,064,143, is not sufficient to to cover the budget deficit for 2021. Previously, the Plenary with 20 votes in favor, 17 against the AKEL amendment committed the amount of 100,000 that has been budgeted for the evolution of the Cereals Committee.
According to the Report of the Parliamentary Committee on Finance to the Plenary Session of the Parliament, it is estimated that on December 31, 2021 there will be a negative cash balance of € 1,054,083, which can not be covered by state sponsorship, which will lead to inability to fulfill obligations of the Cereals Committee.
The report also states that the competent Ministry has submitted to the Parliament bills for the termination of the work of the Cereals Union and the transfer of its staff and responsibilities to the Ministry of Agriculture, Rural Development and Environment.
The Commission's revenue for the year 2021 shows a decrease of € 7,329,280 compared to the year 2020 and comes mainly from resale of cereals (€ 5,010,720), rents and royalties (€ 77,300), non-taxable income (€ 15,000) and deposit interest (€ 4,000).
The Commission's budgeted expenditure for the year 2021 shows a decrease of 41% compared to the corresponding expenditure of 2020 and concerns mainly staff salaries (€ 2,594,552), hourly staff salaries (€ 3,356,274), operating expenses (€ 822,900) , purchase of cereals (€ 4,680,000) consulting services / research (€ 306,820).
The Chairman of the Parliamentary Committee on Agriculture, AKEL MP, Andros Kafkalias said that “we will do everything in our power so that this budget is not the last budget of the Cereals Committee as opposed to the government that does what it can is the last. He noted that the budget had dramatic deficits. He added that there was a reluctance on the part of the Committee on Cereals to do its job, resulting in dramatic reductions in cereals markets, which led to a dramatic reduction in the Commission's revenue.
Taking the floor, DISY MP Onoufrios Koullas said that the decision for the evolution of the Cereals Committee was taken years ago. She added that her new role will be limited to maintaining strategic stocks and supervision and will not trade in cereals. It was not viable and we are in a situation that leads to a violent closure, he added.