Subsidies will again be payable on the export of processed foods from the European Union from the end of this month. The European Commission has announced that it intends to begin paying the subsidies on food containing compounds of dairy products, cereals and sugar from August 21 after a three month suspension. Payment of so-called refunds' were stopped in May on fears that spending on the subsidies would exceed WTO limits in 2000-01. Now, however, an extra 35 million euros have been made available, which should allow refunds to be issued until the end of September. Commission officials say that a reassessment of budget spending on agriculture ahead of the end of the EU's financial year in October means export licences for processed foods (Non Annex I products) could be issued from August 21 and requests for them received from this week. The EU currently exports some 12 billion euros worth of processed products containing mixtures of basic CAP support products such as biscuits, chocolate, yogurt and preserves, accounting for over 25% of the value of farm and food goods sent to non-EU countries. The refunds are designed to compensate exporters for the difference between high internal EU raw material prices and the lower rates found outside the EU in open world markets. Many food industry groups, including the Association of Chocolate, Biscuit and Confectionary Industries of the EU (CAOBISCO) had warned that if this compensation is not maintained, then food companies would relocate outside the EU. {{PROVISIONS }}