The primary sector sends out a danger signal

Statement by AKEL MP Giannakis Gavriel and Chairman of the Parliamentary Agriculture Committee after its session

11 October 2022

We discussed again today in the Parliamentary Agriculture Committee the huge problems facing the primary sector due to the rapid increase in production costs and the need for substantial support towards the agricultural sector.

Our farmers, because of this situation, have found themselves in a particularly precarious position. The now unbearable costs of petrol, raw materials, fertilisers, pesticides and electricity are threatening to crush farmers and livestock farmers.

It is not enough for the government to acknowledge the problem. It must at long last demonstrate the necessary political will to support farmers through the wide range of instruments at its disposal. The government’s response that any support for the agricultural sector will set a precedent for other sectors of economic activity cannot be accepted.

With regard to the increased costs, I would mention by way of example that cereal prices have in many cases tripled and have remained at these levels for a year now. The price of coloured agricultural petrol has doubled in a year, as has the VAT paid by farmers for its purchase. The revenue for the government from the VAT paid on coloured petrol alone has increased in one year from EUR 3 million to EUR 6 million.

The government must immediately elaborate support schemes, but also improve existing schemes which can no longer respond to the increased problems, such as the need to review the rate of the Special Farmers’ VAT Scheme and to extend the use of reduced-rate agricultural petrol across the entire range of agricultural production.