Subsidy for olive oil proposed

Plan to buy 1,500 tons to support farmers

The Ministry of Agriculture (MoA) has submitted to Cabinet a recommendation to subsidize the local olive oil market. The proposal calls on the government to buy 100,000 containers of olive oil, of capacity 15 kilograms each, from local producers.

The productivity of olive trees this harvest ranges between 40 and 50 percent, according to Kassem Hassan, director of the agricultural cooperative in the Southern village of Arabsalim. The main problem in the olive oil sector remains the high production cost, compared to other markets in the region.

The government bought 50,000 tanks of olive oil last year. The price of one 15-kilo-container reached $100. According to Hassan, the cost of producing 15-kilos of oil is around $70. “It will be a good support for olive farmers if the government agreed to purchase this amount (100,000 tanks),” he said.

The MoA is also urging local olive oil producers to boost their exports. According to the MoA, the annual local output is around 30,000 tons. It said some 10,000 tons should be exported each year. Local olive oil is unable to compete abroad, said Hassan: “Australian and Italian olive oil are sold at prices lower than ours.”