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The issue of high prices and rising production costs for farmers and ranchers was discussed again in the agriculture committee on Tuesday. During the discussion, it was highlighted, among other things, that the state is benefiting a large amount of revenue from the increase in prices in energy and other sectors, at the expense of farmers and ranchers, while a Cabinet decision from 2013 to subject agricultural oil to a reduced VAT rate of 5% has not been implemented to date.
The Chairman of the Committee, AKEL MP Giannakis Gavriel, said in statements after the committee's meeting that there is a cabinet decision from July 2013 to subject agricultural "coloured" oil to a reduced VAT rate of 5%, which has not been implemented to date. Therefore, from VAT on agricultural oil alone "the government will collect €6.5 million from farmers in 2022, while in 2021 only €3.2 million", as the price of oil has doubled to €0.24/litre in July, from €0.13 in 2021.
Gavriel added that for all inputs, such as fertilisers, pesticides, etc., "this amount amounts to tens of millions. At a time when farmers are almost begging for support, at a time when they are gasping for breath, the government is seeing its revenue from farmers themselves almost doubling."
The Commission President noted that "farmers and livestock farmers have been hit over the past year by an unprecedented rise in production costs, which threatens to put thousands of farmers out of business, while the government remains a bystander to the problems. Political decisions are needed to support the sector at the highest political level. Unfortunately, the government proves every day that it lacks the political will to solve the problems," he said, adding that political decisions are needed as part of a comprehensive plan.
DIKO MP Christos Orphanides,[/B] referring specifically to the sheep and goat sector, noted that they are in a desperate situation. "The support measures are minimal. Those that have been announced to support sheep and goat farmers have unfortunately to this day still not been given. The people are in a desperate situation." He added that there are obligations and loans to banks that are running and not being paid and "tomorrow they will have other problems with the banks."
ELAM MP Linos Papagiannis[/B] said that the issue of increased costs in the primary sector has been discussed for the twelfth time in the committee. "We keep hearing as an excuse the international developments with the war and the upcoming food crisis. For a state that wants to be called serious, all this time should have been a period of preparation and strengthening of the primary sector of production," he noted. He added that "the state should invest at this difficult time[/B] in strengthening farmers and livestock farmers,[/B] because in the next period we will be called upon to face an even bigger problem, that of self-sufficiency."
The DPA MP, Michalis Yiakoumi, said that the primary sector needs support. "We heard the cry of anguish in the Agriculture Committee, we heard it yesterday in Liopetri from the potato farmers. They need immediate support measures," he said, adding that grants and subsidies must be provided. "There are too many sectors of agriculture and livestock farming. Individualised plans need to be made for each sector, a road map and some timelines need to be made by the executive. We want to see practical and workable," he said.
For his part, the General Secretary of the Producers Group of Goat and Sheep Producers (PGA), George Demetriou, said that sheep and goat farming is a sector which has not been able to pass on the cost of production to its products, resulting in the withering away of the sector. "Sheep and goat farmers cannot subsidise products on a daily basis to go to the consumer. I understand that the state must take steps so as to immediately implement the standard to create the conditions so that adequate milk is put in the halloumi for the goat farmers to get their due and besides, subsidy must be given immediately to hold on to it in the meantime," he noted.
He also pointed out the problem they are facing with the banks, as they cannot service the loans taken for the construction of the plants, which cost more than one million euros, concluding that "while we are producing wealth, we are experiencing poverty and destitution."
Source: CNA
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