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Agriculture in decline, but further funding cuts. Where will the "particles" of the grants approved by the Government go?

2024-09-03 13:05:11Biznes SHKRUAR NGA REDAKSIA VOX

Agriculture in decline, but further funding cuts. Where will the

The agricultural sector has entered a cycle of decline, where the deficiencies in production are being filled with imported products.

Despite this downward cycle, in the last budget changes, the government revised down funding in this sector.

However, in the "particles" given to agriculture, the Ministry of Agriculture will open a new support scheme for farmers through subsidies. The government has allocated additional funds to the Ministry of Agriculture in the amount of 500 million ALL.

Where will this money go?

In the relation that accompanies this document, it is stated that the additional funds in the amount of 500 million lek for the Ministry of Agriculture and Rural Development will go to support farmers for the implementation of the new support/grant scheme for investments, which aims to create initiative to increase investments in the agricultural sector, with the aim of increasing production, agro-processing and exports.

Regarding the relationship, the supplement is needed to cover about 20-30% of the applications, which correspond to the period September-December 2024.

After the approval of the normative act, the Ministry of Agriculture has given some details on where this fund will be used. According to this institution, the supplement will go as support for farmers for the construction of new greenhouses, and for the first time, attention will be paid to the construction of anti-hail nets, since the "infidelity" of the weather at the peak of production has brought great damage to manufacturers. On the other hand, the fund is expected to be channeled into the construction of cattle stables. Some time ago, the Ministry of Agriculture approved an instruction for the construction of halls according to the appropriate standards, where support was provided for this category.

Also, importance will be given to increasing and improving irrigation and drainage, as a very important item to guarantee the increase of production and its quality. In the fishing sector, the funds will be channeled for the nets, in order to increase the occupations at sea.

Agriculture sector in "free fall" 

Official data from INSTAT indicated that agriculture declined by 0.68% in 2023, the strongest since 1997.

The downward trend started since 2013. In the last 10 years, agriculture has grown by an average of 1%, while the result has weakened in the last three years to turn negative in 2023.

On the other hand, the quantities of imported food increased further in July due to the stimulus from tourism on the one hand and restrictions from domestic production on the other.

According to INSTAT data, food imports in quantity increased by 22 percent in 7 months, compared to the same period a year ago. The trend was further strengthened in the month of July as the annual growth was 20% in 6 months.

In terms of value, food imports increased by 9.2 percent as a result of the decrease in prices in international markets.

More detailed INSTAT data show that the largest increase in value was the imports of vegetables and live animals, which led the group of food imports with respectively 57 and 45.5% each.

 


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