Paris, Oct 29 - France's largest farmers group called on Tuesday for the European Union to pay annual subsidies a month early in order to provide relief for farms faced with rising input costs and highly volatile market prices.
The FNSEA wants the European Commission to pay 6 billion euros ($7.51 billion) of subsidies allotted for French farms in November instead of December, a move it said would save farmers 20 million euros in interest on loans.
"This will provide real breathing space right away for farms," FNSEA President Jean-Michel Lemetayer told journalists.
Although much of the farm sector enjoyed favourable price rises last year, a rapid decline in prices in recent months combined with big increases in input costs like energy and fertilisers have left farmers in a delicate position, he said.
Member countries have from time to time requested early payment of EU farm subsidies. In 2003, France was authorised to pay a month early 50 percent of annual aid to grain and oilseed producers in certain regions suffering a severe drought.
Regarding the French milk sector, Lemetayer said the FNSEA was in favour of introducing greater "reactivity" to market prices as called for by dairy processors, but criticised the latter for suggesting price cuts of up to 60 percent next year.
European dairy farmers, notably in Germany, have protested in recent months against falling prices at a time when the EU is discussing how to move towards the planned end of milk quotas by 2015.
France saw a stand-off over prices this summer between dairy group Entremont-Alliance and its milk suppliers.
In a deal at the end of August, Entremont accepted the price rise sought by its milk producers in return for sector-wide talks on changing the system for setting milk prices.
These are currently established each quarter on the basis of recommendations from a body representing milk producers and processors, including Lactalis and Danone .
Lemetayer said discussions between the two sides were scheduled for this Thursday.
In their dispute with Entremont, France's biggest producer of Emmental cheese, milk producers in western France had refused to deliver to the company and blocked its production sites.