Lm320,610 in subsidies to tomato processors

The minimum price tomato processors paid growers would increase by 2c to 9c a kilo, Agriculture Minister Ninu Zammit said yesterday.

He was speaking during the presentation of Lm252,057 to three tomato processing companies: Magro Brothers, Vernon Foods and Farmers Food. The money represents compensation for the 5c subsidy paid on each kilo processed last year.

As a result of the subsidy, processors will, as from this year, be able to reduce their prices for the benefit of consumers. In the meantime, growers were guaranteed a minimum price of 7c a kilo.

A total of Lm320,610 is expected to be paid in subsidies on tomatoes processed last season.

The levies on tomatoes and tomato products will be reduced throughout this year. To ensure that local producers maintain their livelihood, the subsidy on each kilo of tomatoes will increase.

In the package negotiated with the EU, the national quota for tomatoes for processing will increase from a 15,000 ton limit to 27,000 tons by 2014.