The Minister of Rural Development and Food, Mr. Spilios Libanos, announced seven new measures to support farmers, with the aim of reducing production costs. The measures amount to 170 million euros.
Mr. Lebanon’s statements are as follows:
“This government, and personally the Prime Minister Kyriakos Mitsotakis, has proved that it considers the primary sector, the backbone of the development of our national economy.
Today, our farmers are at the most critical point. On the one hand, the great prospects for the future, in view of the implementation of the new Common Agricultural Policy of 19.3 billion euros and the Recovery Fund.
On the other hand, a series of global crises are pushing us all: the pandemic, rising energy prices, climate change and its devastating consequences.
In this difficult time of multiple import crises, we stand by the producers with deeds, not words. The government in 2021, despite the tight fiscal framework, supported our farmers with 1 billion euros.
Today, we announce 7 additional support measures, amounting to 170 million euros.
1) Yesterday, together with the colleagues Ministers of Finance, Environment and Energy, we signed the coverage of 80% of the adjustment clause in the electricity bills for agricultural use for the period from August to December 2021, amounting to 50 million euros. Our farmers will see this amount offset against the next electricity bill.
I make it clear that there will be no power outages before this process is completed.
2) For January and February we cover 50% of the adjustment clause for farmers and agricultural enterprises. This measure will be specified by a relevant Decision of the Minister of Environment and Energy
3) In addition to the reduction of VAT on animal feed from 13% to 6%, we further support our farmers with a subsidy of 7% on turnover, ie on the turnover they will have from January to March 2022. The amount of this aid is estimated at EUR 30 million.
4) We are permanently reducing the VAT on fertilizers from 24% to 13%, an intervention of 20,000,000 million euros.
5) We include in the Transport Equivalent the transport of feed in Crete for the year 2022, an intervention of 8,000,000 million euros. This measure will be specified by Ministerial Decision of the Minister of Shipping and Island Policy.
6) We increase by 50% the program of the small Aegean islands for the transport of feed, ie by 3.5 million euros.
End,
7) Regarding the already announced return of the excise tax on oil for young farmers, those who belong to collective schemes and those who are part of contract farming, amounting to 50 million euros, a relevant JMC will be issued immediately by the Ministry of Finance.
“We support in practice the Greek women and farmers who work hard 365 days a year under adverse conditions, producing wealth for the national economy, for all of us.”
Source: Capital
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