PARIS (Reuters) – On Wednesday, monetary policy for wine producers facing a sharp drop in the call after the closure of places to eat and bars and U.S. price lists slowed exports.
“The state is going to develop its plan to help viticulture at 250 million euros and we will ask that this aid be distributed as soon as possible because the need for liquidity is urgent,” French Prime Minister Jean Castex said Wednesday.
Castex made the announcement a stopover at the Menetou-Salon and Sancerre vineyards in the Loire region.
“The external situation, the fitness crisis, the fall in exports: our wine sector faces wonderful difficulties. The state will have to continue and intensify,” Castex said earlier on Twitter.
France already has some support, but the wine industry has called for more action.
In May, France launched a crisis mechanism of 140 million euros ($165.87 million) to distill surplus wine into commercial alcohol for the manufacture of hand sanitizers.
Then, in June, the government unveiled another 30 million euros for the wine industry, adding 15 million for the launch of a personal garage device of two million hectolitres of surplus wine, an option for distillation.
In addition to the effect of COVID-19, the French wine industry has suffered U.S. price lists. On imports imposed as a component of the EU-US. industry dispute over aircraft subsidies.
In April, the European Commission took the decision to take crisis control measures in wine and other agricultural sectors affected by the coronavirus crisis.
Reporting through Dominique Vidalon, edited through Louise Heavens, Jane Merriman and Barbara Lewis
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