A resolution was made at the EU ministerial meeting recently: the European Union will continue to subsidize the linen and hemp fiber producers in Europe, and the amount of subsidy will start from the annual production of 2009/2010 flax, increasing from 160 euros (251 US dollars) per metric ton to 200 euros.

It is understood that the measure will meet the needs of local manufacturers of yarn and textiles, and may also be disappointed by exporters who oppose this subsidy measure.

Previously, processing manufacturers of Belgian, French and Holland producing linen long fibers provided additional 50~120 euros per hectare.

At the same time, the production of flax and hemp short fibers in the EU will maintain a subsidy of 45 euros per ton.

According to the regulations, the maximum amount of impurities contained in the flax and hemp staple fibres should not exceed 7.5%.