Growers receive Lm207,784 in subsidies

In the second quarter of this year the government handed out Lm207,784 in subsidies on fruit and vegetables to make good for a drop in sales, Parliamentary Secretary Francis Agius said.

Speaking during a visit to farmers in Siggiewi, Dr Agius said there were several reasons for the drop in sales from the Pitkalija vegetable market.

One was the removal of levies and the liberalisation of imports. This resulted in a bigger choice of agro products at a reduced price.

Dr Agius said the production of local fruit such as nectarines, peaches and plums was three times bigger than that of last year.

He said the government had wisely anticipated these factors and introduced a subsidy for farmers under the Special Market Policy Programme for Maltese Agriculture.

The government was also assisting farmers set up producer organisations which would help them restructure by giving them advice and training on managing their land in the most advantageous manner in a competitive market.

The biggest development taking place was the setting up of a grading station facility, cold storage and packaging for fresh products sold from the Pitkalija, he said.

This development would cost €1.43 million, financed by the Fifth Italian Protocol.

Dr Agius said that watermelons and peaches were the biggest sellers at the Pitkalija this year. Watermelon production this year was up by 16 per cent, reflecting a 159 per cent increase in income - a record for the past five years.

The production of peaches was up by 132 per cent, leaving an additional income of 79 per cent.

One had to keep in mind, Dr Agius said, that when production increased prices went down. He said that the subsidy on these fruits between May and July would exceed Lm135,000.

He said farmers were also given Lm10 per tomna they toiled and Lm10 per tomna sown with potatoes.