Amendment to draft of Agricultural Market Agency Act is expected to reach Polish Parliament

The revised draft amendment to the Agricultural Market Agency Act is expected to reach the Polish Parliament soon

On May 25, the draft law amending the Agricultural Market Agency Act and the organization of certain agricultural markets and amending certain other laws was passed to the Standing Committee of the Council of Amen Ministers. In case of a positive opinion on the project, it will go to the Parliament.

Compared to the previous editorial, some of its regulations have changed, for example:

• agricultural products that are niche or non-existent in Poland, with low production potential or sales of more than 90% in direct sales (rice, dried fodder, seeds, olive oil, bananas, ethyl alcohol of agricultural origin, silkworms, bee products) will be excluded from the scope of products for which a contract is required,
• in accordance with the proposed definition of the term „producer„, the conclusion of a written contract for the delivery of agricultural products will apply only if one of the parties is a farmer whose farm is located in the territory of the Republic of Poland,
• scope of subject exemptions of the Act is proposed to be extended to direct supplies, which relate to products of plant origin marketed in small quantities, and agricultural retail trade (within which agricultural products, raw materials of animal and non-animal origin are sold, within specified limits),
• producers, cooperatives, agricultural producers groups, pre-approved fruit and vegetable producer groups, recognized fruit and vegetable producers organizations, producer organizations are planned to be exempted from the provisions of the Act in case producers making transactions with these groups or organizations provided that the Act requirements are fulfilled by the statutes or agreements of such groups/organizations,
• according to the new wording of paragraph 1a art. 38 in addition to the written form of the contract for the delivery of agricultural products, a documentary or electronic form is acceptable too,
• an obligation on the storage of contracts for the supply of agricultural products for a period of 2 years from the time of the last delivery under that agreement was established,
• differentiated penalties were imposed for the conclusion of a defective contract, ie not containing the elements required by Regulation No 1308/2013, depending on the degree of the fault. Where the contract does not meet more than one condition, fines are to be added together, provided that the aggregate fine cannot exceed 5% of the payment for products purchased under a defective contract.

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