"The price to be paid for a litre of wine is driving smallholding regions with high production costs to suicide, exposing the directors of their associates to accusations of harmful management due to negligence by selling wine at a price much lower than the production costs", warned Fenadegas.

The federation also stated that there is a "total disrespect" for the Designations of Origin, which is "ruining all its efforts to promote wine over decades".

In July, the European Commission announced the allocation of 15 million euros from the European Union (EU) to support Portuguese wine producers facing serious market disruptions, out of a total of 77 million euros for four countries.

In a statement, the EU executive said it had proposed to the Member States, which had accepted it, that 15 million euros be mobilised from the EU agricultural reserve to "support Portuguese wine producers facing serious market disruptions".

This amount is part of a total sum of 77 million euros that will also support farmers in the fruit, vegetable and wine sectors in Austria, the Czech Republic and Poland, recently affected by unprecedented adverse climate events, the institution adds, and the four countries in question can supplement this EU support by up to 200% with national funds.

Fenadegas stressed that the negotiation in question was reflected in regulation by the European Commission, which is based on the need to relieve pressure on wine market prices and the level of compensation for wines to be withdrawn from the market must be 20% below the prices of bulk wines.

The diploma that was published in the Official Gazette on August 5, which defines the rules for implementing the support in question, determines that all wine to be distilled would be paid at 0.42 euros per litre.

The federation disputes this value, arguing that there is a "violation of the assumptions" on which the European regulation is based.

Fenadegas also regretted that "there is no justice" in the implementation of the measure, through positive discrimination for mountain regions, which has increased costs.

On the other hand, it "pointed the finger" at the Institute of Vine and Wine (IVV), accusing it of not having done its homework properly.

"[...] The Secretary of State should have been given the task of resolving the problem completely, without harming the thousands of producers who make their living from the vineyards. If that was the case, the Secretary of State did not get the message and did not inform the Minister that it was necessary to increase the budget with national money and distribute it fairly," he pointed out.

The president of Fenadegas, António Mendes, foresees that the problem of excess stocks will not be resolved in several designations of origin, warning of the possibility of a "huge revolt by farmers" who have nowhere to store their grapes.