A proposal by the Ministry of Agriculture, Rural Development and Environment to support professional farmers, who are registered in the Register of Farmers and Agricultural Holdings, through the payment of emergency state aid, due to the increased cost of electricity, which resulted from the effects of the prolonged drought, was approved by the Council of Ministers during its meeting today.
According to a Ministry announcement, over the last three years, reduced rainfall has led to a reduction in the available quantities of irrigation water and an increase in dry conditions, forcing producers to meet their needs through drilling and additional use of electricity for irrigation, cooling and crop protection, with the increased energy cost having significantly burdened production costs and, by extension, agricultural income.
As reported, by its decision, the Council of Ministers approved the allocation of a fund of €1.000.000 to subsidize part of the consumption of electricity during the period July 2024 - August 2025, which will be granted under the de minimis aid regime to professional farmers (natural persons, legal entities and cooperatives), for specific electricity tariffs used exclusively for agricultural purposes (professional code 011-Agriculture).
The aim of the decision is to alleviate the economic pressures caused by increased energy consumption, by directly reducing the relevant costs for producers, so that they can meet the needs of their farms without undermining the sustainability of their activity, it is noted in this regard.
It is added that payments will be made through the Electricity Authority of Cyprus (EAC), with relevant appropriations that will be covered by savings in the Ministry's budget, with the Authority crediting the amount of aid calculated by the Ministry to each beneficiary's electricity account.
This decision constitutes a targeted intervention to ensure the continuity of agricultural activity in conditions of increased energy pressure and prolonged drought, contributing to the sustainability of Cypriot agriculture, the Ministry concludes.
Source: KYPE
