In a statement, the government said all the pitkala had made the requested 10 per cent guarantee. Photo: Chris Sant Fournier

A stand-off over regulations forcing the Ta’ Qali fruit and vegetable market middlemen to pay 10 per cent of their annual turnover as a licence-renewal guarantee was “resolved”, the government said yesterday.

In a statement, it said all the middlemen, or pitkala, had made the requested guarantee.

Welcoming the agreement, the Parliamentary Secretary for Agriculture, Roderick Galdes, said it was crucial to have all stakeholders on board for the planned reform at the market (the Pitkalija) to succeed.

The next step will be grading the farmers’ produce, the use of technology to monitor its traceability, upgrading the Pitkalija infrastructure and more controls on the fruit and vegetable crates.

“The government is committed to safeguarding farmers’ interests while reforming the Pitkalija”, Mr Galdes said.

Sources told Times of Malta, however, that the announcement did not necessarily mean an agreement had been reached. They noted that the pitkala in question had either made the guarantee or given an assurance they would be doing so by the April 24 deadline.

The government is committed to safeguarding farmers’ interests

The sources said the pitkala would be meeting today to decide whether to continue their legal challenge against the provision made by the government on the bank guarantee.

While the pitkala insist such a measure would threaten their livelihood, the government is arguing that the money would only be used in case a defaulting pitkal failed to pay farmers.

The regulations also direct the middlemen to collect dues from hawkers for agricultural produce purchased. There were tense moments at the Pitkalija last Thursday as the majority of pitkala were locked out for not making the requested guarantee.

In March, a court turned down an application by the Pitkala Association to stop the new provisions from entering into force. The pitkala claimed that, under the new regulations, they would have to pay a €50,000 guarantee on a turnover of €500,000, while their commission on the sales would only amount to €40,000.